A Jaipur-based resort owner named Madan Jain has filed a complaint against OYO and its CEO Ritesh Agarwal. He alleges that thousands of fake bookings were shown, causing them a ₹2.66 crore GST notice. Moreover, reportedly, this is not a single case; almost 20 hotels received inflated GST notices.
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FIR Against OYO, and Ritesh Agarwal.
As per reports, this FIR is being lodged by a resort owner, Madan Jain, against OYO, a hotel booking platform. This FIR was made by the resort when it received an extra GST notice, and the resort claimed that it was due to ‘incorrect information provided by OYO.
Jaipur-based Samskara Resorts’ owner Madan Jain filed an FIR against OYO in Jaipur’s Ashok Nagar Police Station last week. Jain says Samskara Resorts received an inflated GST notice of ₹2.66 crore. According to Jain’s claim, OYO showed thousands of fake bookings in the name of Sanskara Resorts to show inflated annual turnover.
While FIR states that OYO generated only a ₹10.95 lakh business for Samskara Resorts. For this amount, GST was paid by the resort. Let’s understand the resort’s allegation against Ritesh Agarwal in detail.
Why FIR on OYO and Ritesh Agarwal: Key Details.
FIR filed by Jain names Oravel Stays Private Limited or OYO, Ritesh Agarwal, and many others. FIR alleges OYO for cheating, criminal breach of trust, forgery, and criminal conspiracy under the Bharatiya Nyaya Sanhita (BNS).
In the FIR, Jain claims that “thousands of fake bookings were shown in the name of Samskara resort, to show an inflated annual turnover”. FIR states that Samskara Resorts provides both online and walk-in booking services. Jain says that an agreement between OYO and Samskara was signed on April 18, 2019, for just 12 months.
But OYO allegedly also showed the bookings in Samskara for FY 2018-19, 2019-20, and 2020-21. Moreover, in the FIR, Jain claims that OYO made just ₹10.95 lakh in business for Samskara during the 12-month agreement period between April 18, 2019, and April 20, 2020.
However, OYO showed a ₹22.22 crore business with Samskara that caused the resort a ₹2.66 crore GST pending plus penalty.
OYO: A “Poor Record” History.
Now, to understand this is not a single story, almost 22 other resorts or hotels are suffering from the same issue due to incorrect information by OYO, where resorts are receiving GST notices due to inflated bills.
Hussain Khan, president of the Hotel Federation of Rajasthan, said that OYO 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’s Response On The Case.
Till yet, OYO or its CEO Ritesh Agarwal has not given any statement. So, this issue is still unsolved.
Why is Ritesh Agarwal Doing So?
For this particular question, there is no data available, but from the above story, things could be understood. As per our analysis, there is a high probability that it’s blackmailing, as there was only 12 months of agreement between OYO and the resort.
But due to OYO’s ‘poor record’ resort planned to discontinue with OYO, and OYO started blackmailing in Ego. Disclaimer: This is just an analysis based on the data, please don’t consider it reality.
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