The Delhi High Court, on Monday, responded to a legal request from OYO Hotels & Homes by issuing a notice to various media outlets. The hospitality firm approached the court with concerns over news reports they claim are defamatory in nature and linked to a First Information Report (FIR) filed in Rajasthan against the company and its founder, Ritesh Agarwal.

Justice Amit Bansal, presiding over the matter, directed the news platforms to respond to the petition. Additionally, the court allowed OYO to submit its side of the story to the same media portals along with a copy of the Rajasthan High Court order, which currently puts a stay on any action stemming from the FIR.

Background: Dispute with Rajasthan Hotel Owners

OYO finds itself in a heated legal battle involving multiple accusations from hotel owners and state regulators. The allegations revolve around suspected breaches of state regulations related to hotel management, consumer protection laws, and taxation rules.  

In particular, hotel operators from Rajasthan cities such as Jaipur, Udaipur, and Jodhpur have accused OYO of employing questionable business tactics. These include offering extreme discounts, delaying payments to hotel partners, modifying contractual agreements without consent, and withholding Goods and Services Tax (GST) collected from customers.

FIR Details: Fraud and Tax Allegations

The situation escalated when Samskara Resort, a hotel based in Jaipur, filed an FIR against OYO and its founder. The complaint accused the company of inflating revenue through fake bookings totaling ₹22.5 crore. This allegedly led to a GST demand being issued to the resort, with claims that similar tactics had been used across other hospitality businesses in the state.

According to the FIR, these alleged actions resulted in multiple tax-related notices from state authorities. The Rajasthan High Court, however, has since stepped in and temporarily halted any punitive measures arising from the FIR.

OYO Seeks Control Over Media Narrative

In the Delhi High Court, OYO asserted that several news articles were published based on the FIR without the company being contacted for its viewpoint. Senior Advocate Satvik Varma, representing OYO, argued that these reports unfairly damaged the company’s reputation and brand image by presenting a one-sided narrative.

OYO further claimed that its founder’s image and company trademarks were used in these articles without permission, further compounding the alleged reputational harm.

Relief Granted: Right to Publish Rebuttal

Although the Delhi High Court declined to impose an immediate ban on such media publications, it granted OYO permission to share its response with the concerned outlets. The Court directed that once OYO submits its version and the Rajasthan High Court order, media platforms should give it due coverage.

The Court’s decision provides OYO an opportunity to counter what it describes as false and misleading narratives in the public domain.

Legal Representation 

Representing OYO’s parent company, Oravel Stays Limited, Senior Advocate Satvik Varma appeared before the Court, supported by legal counsels Manish Dhir, Shantanu Parmar, and Balram. Their plea aimed at protecting both the company’s public image and its legal interests amidst ongoing investigations and media scrutiny.