Jaipur’s famous Sanskara Resorts is once again in the headlines, but this time the reason is a big controversy. Actually, the resort has filed an FIR against Oyo making serious allegations, which includes the names of many people including Oyo’s founder and group CEO Ritesh Agarwal.
Sanskara Resorts has alleged that Oyo deliberately increased their turnover by showing fake bookings, due to which they have received a GST notice of crores of rupees.
What is the whole matter?
Madan Jain associated with Sanskara Resorts has lodged an FIR at Ashok Nagar Police Station in Jaipur. He told that he has received a GST show cause notice of ₹ 2.66 crores, the reason for which is the fake transactions done by Oyo.
The FIR also states that Oyo showed bookings for years like 2018-19, 2019-20 and 2020-21, whereas the agreement between the two was only for 12 months from 18 April 2019.
Fake bookings and inflated turnover
According to the FIR,
- Oyo showed actual turnover of ₹10.95 crore between 18 April 2019 and 20 April 2020,
- but at the same time inflated the turnover by showing fake bookings of ₹22.22 crore.
- Now the resort owes GST and penalty of ₹2.66 crore on this.
Hotel Federation also raised voice
Hotel Federation of Rajasthan President Hussain Khan has also made serious allegations against Oyo. He says that at least 20 hotels in Rajasthan have received GST notices on the basis of similar fake bills.
He said that even four years ago, 125 hotels had protested against Oyo by putting up banners, which read, “We are not accepting Oyo bookings.”
What are the sections registered in the FIR?
In the FIR lodged by Sanskara Resorts, Oyo and its officials have been charged under the following crimes:
- Cheating
- Criminal Breach of Trust
- Forgery
- Criminal Conspiracy
All these allegations are currently being investigated by the police. The resorts have also demanded that Oyo compensate them for the financial loss they have suffered.
Can Ritesh Agarwal get trapped?
Although this is still a matter of investigation, if the allegations are proven true, Ritesh Agarwal, who is the founder and group CEO of Oyo, may be in trouble.
Oyo has been embroiled in controversies many times in the past, especially regarding non-payment from hotels and sharing incorrect data.
Conclusion
This new dispute between Oyo and hotels once again reflects the lack of trust in the hotel industry. Sanskara Resorts claims that they have been deliberately harmed, and are now seeking justice.
Will these allegations against Oyo be proven?
Will Ritesh Agarwal be able to get out of this legal mess?
