Jaipur Resort Files FIR Against OYO for Alleged GST Fraud Over Fake Bookings

 

 

In a fresh blow to the hospitality unicorn, OYO is now facing serious allegations of financial misconduct. Jaipur-based Samskara Resorts has filed an FIR accusing OYO and its CEO, Ritesh Agarwal, of inflating the resort’s turnover using fake hotel bookings, which allegedly led to a GST show cause notice of ₹2.66 crore. The case has been registered at Ashok Nagar police station by Madan Jain, the owner of Samskara Resorts.

The FIR, which falls under various sections of the Bharatiya Nyaya Sanhita (BNS), names OYO’s parent company, Oravel Stays Pvt. Ltd., along with other officials. The charges include cheating, criminal breach of trust, forgery, and conspiracy—raising significant concerns over OYO’s business practices.

This OYO fraud case stems from claims that thousands of bookings were falsely recorded under Samskara Resort’s name, artificially inflating its turnover. This manipulation allegedly led to a hefty tax demand from the GST department, sparking outrage within the hotel community.

OYO GST fraud allegations have triggered wider scrutiny, with Hussain Khan, head of the Hotel Federation of Rajasthan, stating that nearly 20 hotels in the region have received similar GST notices due to OYO fake bookings. He accused the company of submitting inflated bills to the tax authorities, causing undue legal and financial pressure on partner hotels.

The growing OYO controversy adds to the challenges already faced by the SoftBank-backed company, which has previously been in the spotlight for disputes with hotel partners over contracts, payments, and platform policies. As investigations proceed, the case could set a crucial precedent in the Indian hospitality sector regarding platform accountability and fair trade practices.