Date : March 28th, 8 PM.
Yogi’s bail has been rejected. No words.
Stayzilla founder, Yogi is still in the jail and we will only get to know by tomm on the bail application. There are several rumors / sentiments flying around the case (specifically around non-payment of dues to the vendor). This post will give you the necessary information. But first, here are the update on Yogi case:
- The bail application has been presented today. Hearing likely tomorrow.
- Bail Application in higher court, with a new judge. So, the judgement is likely to be impartial now.
- 3. If all goes well, Yogi should be out on bail tomorrow.
What about the vendor? Do they have no right?
- Yes. Vendor needs to get paid their dues.
- But, this is a disputed bill. Yogi claims, this vendor had not put up displays in most tier-2 cities, they have billed for.
- Rather than correcting the bill, the vendor has been harassing the founders to pay up the money.
What about other vendors?
- Yes. There are a few other vendors who have small payments due. e.g. CouponDunia
- Vendor dues are being settled as a process of shutdown. (A running company has vendor dues which gets settled in few days to a couple of months.)
- In fact, this vendor was the largest due, only due to wrong billing by the vendor.
Settling Vendor Dues:
- Receivables is Rs.10 Cr odd, of which 7Cr is definitely coming in. Company has enough money to pay the dues.
- The rumour that VCs asked to choose any one between vendor dues and employees, is false. All vendor dues are being settled.
- The next highest vendor due is Rs.40L (Also disputed). It is being discussed and settled between Stayzilla and the vendor. The next biggest is 25L which is being settled.
- A failed startup is an easy target. The founders are at a low, so it is easy to squeeze them.
- A failed VC funded started is already vilified by the media. So, an accusation of fraud is going to be gobbled up by the media, and against them.
- Except, Yogi did not surrender to the pressure and decided to stand up against them.
What to do with wrong vendor billing?
- If a vendor gives you an inflated bill, how do you address it?
- Raise concern, stop payment, ask vendor to send corrected invoice, settle between yourselves.
- If no conclusion possible, vendor can take the legal route.
What does the law say?
- File a case in the court (Civil case) and ask the court to look into the matter.
- A company can not shut down, until there is a vendor claim due. The company has to prove there are no payments due.
- This process was being followed by Stayzilla.
Why no support for Jigsaw?
- Wrong billing – trying to make quick buck without actually doing the work.
- On being caught, do threatening calls, send voodoo dolls threatening their kids, and harassing the founders.
- When this does not work, file false charges of fraud, work with politicians, and get Yogi arrested without investigation.
- On what grounds should one support them?
What are the charges of Fraud?
- Fraud claims are that the founder took money apart from salary, and paid to relatives who are not employees.
- These payments were Rent for office space, and reimbursement of server bills, paid via personal credit card.
- Details have been published in a post by stayzilla.
- False, baseless claims, made primarily to harass the founder and extort money from him.
From Team Help Yogi.