Custody of Stayzilla was granted to Central Crime Branch police.
A special court on Thursday dismissed the bail plea of Yogendra Vasupal, co-founder of online home stay aggregator Stayzilla who was arrested on charges of cheating and criminal intimidation.
Dismissing his bail petition, Special Metropolitan Magistrate (CCB-CBCID) M M Kabir granted custody of the start up firm's chief to Central Crime Branch police till tomorrow.
Vasupal, who was arrested by the CCB on March 14 for alleged cheating and criminal intimidation, had yesterday averred during arguments that the charges against him were "foisted".
He had claimed that it was part of "pressure tactics" to settle a "civil dispute."
On a complaint from C S Aditya, representing Jigsaw Advertising and Solutions, a case was filed against Vasupal and his partner Sarjit Singi by CCB. IPC provisions relating to cheating, criminal intimidation and criminal breach of trust were invoked against the duo.
It was alleged by the advertisement firm that Stayzilla had defrauded it to the tune of about Rs 1.68 crore for services it had rendered since last year.
The counsel for Vasupal contended that the dispute was of a civil nature and police should not have gone solely on the basis of the complainant's version and arrest his client.
Police should have at least enquired with the petitioner about the dispute, he submitted.
Additional Public Prosecutor S Manual Arasu, however, opposed the bail plea and moved an application seeking two days' custody of the accused. He maintained that it was prima facie a case of cheating.
He said the other accused was absconding and it was "premature" to allow the bail application.