Case filed against Oyo’s founder Ritesh Agarwal, company denies charges
An Indian hotelier accused the group of fraud and cheating
An Indian hotelier has filed a case against Ritesh Agarwal, founder of India’s Oyo Hotels on charges of fraud and cheating. The hospitality group has denied all the charges.
The Bengaluru-based hotelier Natarajan VRS accused Agarwal and his colleagues of alleged “criminal acts of fraud, cheating and misappropriation of 80% of the revenue share due to his hotel from June 2017 until August 2019”, Economic Times reported.
According to the complaint, the hotelier alleged that Oyo violated an agreement of taking only 20% commission from each reservation and in the process cheated him of INR 1 crore.
However, Oyo denied all the charges. “We strongly refute the claims made in the complaint that has been wrongfully filed against our Founder and two other office bearers, basis false claims and exaggeration on a regular commercial dispute… Our lawyers are looking into the matter and will be taking strong legal action as these claims are incorrect and defamatory in nature,” Oyo told NewsMinute.
In June this year, Oyo threatened to take legal action against groups in India for trying to disrupt its business after around 67 partner hotels went on a strike for two days.
Oyo told Hotelier Middle East: "OYO Hotels & Homes, India’s largest hotel chain strongly refutes baseless and publicity-oriented claims made against the company’s founder and other executives. The hotel chain shall vigorously defend these allegations in the court of law and expose this incident for what it is - a private contractual dispute that was frivolously brought to the criminal justice system based on concocted facts in order to gain leverage and extract illegitimate commercial advantage. OYO Hotels & Homes is committed to the highest level of professional integrity and transparency."