The Madras High Court today granted bail to start-up firm Stayzilla CEO Yogendra Vasupal nearly a month after he was arrested on charges of cheating.

Justice S Bhaskaran granted bail to Vasaupal on a personal bond Rs 40 lakh.

The Stayzilla CEO was arrested on March 14 on a complaint by city-based advertisement firm that it had been defrauded by the online home stay aggregator Stayzilla to the tune of Rs 1.69 crore.

When the complainant firm Jigsaw Advertising and Solutions sought a direction for a mediated settlement to the issue, the judge said it was a clear case of business transaction between two entrepreneurs.

He said it was for the parties to work out such a remedy.

Earlier Vasupal's bail plea had been turned down twice, first by the special CB-CID court on March 23 and then by the principal sessions court here on March 28.

The Central Crime Branch sleuths had arrested Vasupal on a complaint from C S Aditya of Jigsaw Advertising and Solutions and booked him on charges of criminal breach of trust, intimidation and cheating.

It was alleged that Vasupal and his partner Sarjit Singhi had criminally intimidated the complainant when he demanded refund of the dues.