FIR against OYO, founder Ritesh Agarwal in Jaipur over fake bookings: Report

ByHT News Desk
04-15

The FIR, which was filed at Jaipur's Ashok Nagar police station, was based on a complaint by Madan Jain of Samskara Resorts, The Indian Express reported.

In the FIR, Jain claimed that OYO, officially known as Oravel Stays Pvt Ltd, inflated the resort’s turnover by showing fake bookings — some of which even dated for periods when there was not even an agreement between the two parties.

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Samskara had a 12-month agreement with OYO starting April 18, 2019 and during this period, the resort said it only received bookings worth 10.95 lakh through OYO and paid GST accordingly, the publication reported.

However, OYO allegedly reported a business worth 22.22 crore, resulting in the GST department issuing a notice demanding 2.66 crore in unpaid tax and penalties.

OYO allegedly also showed bookings in Samskara for the financial years 2018-19, 2019-20, and 2020-21, when the contract didn't even exist between them.

Who all are named in the FIR?

The FIR names Oravel Stays Private Limited or OYO, as well as Ritesh Agarwal, the founder and group CEO of OYO, and several others, and has been lodged for cheating, criminal breach of trust, forgery, and criminal conspiracy under the Bharatiya Nyaya Sanhita (BNS).

Meanwhile, it has been alleged that Samskara resorts is not an isolated case of inflated bill generation by OYO.

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Husain Khan, president of Hotel Federation of Rajasthan, alleged that about 20 hotels have received GST notices based on inflated bills allegedly shown by OYO, The Indian Express reported.

He said that OYO has had a “poor record” with hotels, and four years ago too “we had campaigned against it, with 125 hotels displaying banners outside the hotels stating that we are not accepting OYO bookings”.

OYO has not yet responded to the allegations.

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