Many startup CEOs and investors from firms such as Matrix Partners, MobiKwik, and Freshdesk among others have come forward to express support for Yogendra Vasupal on social media. But, with a minister of the stature of Kharge coming in, the scenario gets tweaked to a massive extent.

Though we are not still not aware of what is being internally done to resuce Vasupal, in a tweet, Kharge said he is working to see how can they sort out the issues of Stayzilla. He also said that he is reaching out to his counterpart in Chennai. After about an hour, he again tweeted to inform that he spoke to TN IT Pr Secretary Mr. Ramchandran regarding the issue, and has asked his intervention on the merits of the case and to do the needful.

Working to see how we can sort out @stayzilla issue with my counter part in Chennai. Will be reaching out to him soon.

— Priyank Kharge (@PriyankKharge) March 15, 2017

Spoke to TN IT Pr Secretary Mr. Ramchandran on @stayzilla issue. Have asked his intervention on the merits of the case & do the needful

— Priyank Kharge (@PriyankKharge) March 15, 2017

Yesterday, a team led by assistant commissioner of police S Muthuvel Pandi and inspector Anand Babu of the entrustment fraud wing of the Central City Crime branch had questioned Yogendra Vasupal. According to some reports, he has confessed to having defrauded advertising agency Jigsaw of Rs 1.72 crore. However, we couldn’t confirm this independently and have come across other reports that suggest otherwise.

Stayzilla decided to halt its operations last month, after raising over $34 million in funding from influential investors such as Nexus Venture Partners and Matrix Partners, both of whom participated in multiple rounds for the company. In a blog post, Vasupal has highlighted the issues he faced with the landlord in whose premises Stayzilla had an office, along with the issues and treatment from the advertising agency which has filed a complaint against him.