A Jaipur-based resort, Samskara, has lodged a criminal complaint against hospitality giant OYO and its founder Ritesh Agarwal, accusing them of manipulating booking records. The resort alleges that OYO inflated its turnover by showing fake hotel bookings, leading to a ₹2.66 crore tax notice from the GST department.
Who is involved?
The FIR, filed at Jaipur’s Ashok Nagar police station, names Oravel Stays Pvt Ltd (OYO), Ritesh Agarwal (founder and CEO), and other unidentified company personnel. Madan Jain, representing Samskara Resorts, is the complainant. The charges listed include cheating, forgery, criminal breach of trust, and criminal conspiracy under the Bharatiya Nyaya Sanhita.
When did this occur?
The FIR was registered recently, following the GST department’s notice to Samskara for tax discrepancies. The alleged false reporting by OYO spans multiple financial years—2018-19 to 2020-21—even though the two entities had a business relationship only for a 12-month period beginning April 18, 2019.
Where is this unfolding?
The case has emerged from Jaipur, Rajasthan, where Samskara Resorts operates. The complaint has put the spotlight on OYO’s operations in the region, reigniting concerns among hotel owners over alleged misreporting and billing irregularities.
Why was the complaint filed?
Samskara claims it received bookings worth only ₹10.95 lakh during its contract with OYO and paid GST accordingly. However, OYO allegedly reported a staggering ₹22.22 crore in bookings for the resort—some of which were supposedly made during periods when no formal agreement existed. This discrepancy triggered a GST notice demanding unpaid taxes and penalties amounting to ₹2.66 crore.
How is the hospitality community responding?
Industry leaders suggest that Samskara’s experience may not be isolated. Husain Khan, President of the Hotel Federation of Rajasthan, revealed that around 20 hotels have faced similar GST notices, alleging inflated booking records by OYO. He also recalled a protest by over 100 hotels four years ago, which publicly disassociated from OYO bookings, citing unfair practices.
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