Oyo Hotels and Homes’ often uneasy relationship with its budget hotel partners has taken a new twist.
One independent hotelier in Bengaluru has filed a criminal complaint with police over an alleged breach of contract.
This has led to Oyo CEO and founder Ritesh Agarwal and two other executives being booked under charges of cheating and criminal breach of trust.
It was brought by Natarajan VRS, owner of Rajguru Shelter Hotels alleging Oyo violated contract terms.
The original terms stated Oyo would take 20% commission and Natarajan would receive 80%.
In reality Oyo has been holding onto 80% of revenues, Natarajan said.
Two other OYO representatives Anand Reddy and Prathik Singh were also named in the complaint.
Oyo refutes the claim, calling them ‘incorrect and defamatory’ and vowed to fight them.
"Our lawyers are looking into the matter and will be taking strong legal action."
It is not the first time of conflict between Oyo and its independent hotel partners.
The Hotel and Restaurant Association of Western India has been vocal in its criticism of ‘cheating and arm-twisting tactings.’
Nationwide protests against the company have been simmering over allegedly charging hidden fees not disclosed on contracts and in some cases changing the terms and conditions without advance notice.
This led to a ‘Say No to Oyo’ boycott campaign asking hoteliers to cut ties with the company.
