Sikkim hotels' cheat slur on OYO

RAJEEV RAVIDAS, TT, 26 Nov 2019, Gangtok: The Sikkim Hotels and Restaurants Association has threatened to take legal action against hospitality chain OYO for allegedly cheating its 40-odd franchises in the Himalayan state by violating the contracts.

The association said it had been approached by 40 to 50 OYO hotel franchises, complaining of alleged "fraud, payment issues, violation of contract, non-transparency accounts, arbitrary charges and deductions, and gross mismanagement" by the Gurugram-headquartered company.

"The hotel association took cognisance of the issues and evidences submitted and finding it genuine has promised to take all necessary steps to protect the interests of OYO Hoteliers which may include legal and police action against OYO in Sikkim," said the association in a release issued to The Telegraph.

The association said the OYO hoteliers had unanimously complained that they had been defrauded by OYO which had tied up with them by promising various benefits for a commission ranging from 15 to 20 per cent. "However, much to their shock, OYO unilaterally revised the commission to 23%, increased Platform Fees to 5%, taking the overall commission to 28% without consent of hoteliers and in violation of the singed agreement," said the release.

The association also accused OYO of levying "hidden charges" against the local hotel owners. "Surprisingly, they are charged commission even on No-Show or cancelled bookings and `fake bookings'," it said. Despite having a local GST number with a registered local address, the company, the release said, does not have any such office either at the given address or anywhere else in Gangtok.

The Telegraph tried to get in touch with OYO representatives for a reaction to the allegation, but was unsuccessful.