Oyo Slapped With Rs 50,000 Penalty After Guest Was Denied Room Despite Reservation


Rohit Kulkarni

Rohit Kulkarni

Feb 16, 2024


The hospitality chain OYO has been slammed a fine of Rs 50,000 which includes: ₹3,461 for a three-day hotel booking that was invalidated for one day, ₹11,000 in legal expenses and pay ₹25,000 in damages to the customer. The decision was issued by the consumer forum president, Sanjeev Jindal, and members Jyoti Swatch and Khushwinder Kaur.

Oyo Slapped With Rs 50,000 Penalty After Guest Was Denied Room Despite Reservation

Legal Action Over Denied Hotel Booking

From December 30, 2021, to January 2, 2022, Advocate Vibhor Aggarwal had booked a room at “Hotel New Sunshine” and despite the booking and its confirmation, the hotel had declined the guest’s stay on December 31, citing the reasons of full occupancy. As a result, Aggarwal was forced to secure alternative accommodation for that day.

Due to the inconvenience caused by the hotel’s actions, Aggarwal and his visitor decided to go the legal route and sent OYO a formal notice seeking a full refund and ₹50,000 in damages.

It was Advocate Sandeep Yadav who represented OYO, whereas the complainant Vibhor Aggarwal, was present alongside advocate Bhupinder Yadav.

Consumer Court Ruled in Favour of Complainant

The matter was further taken to the consumer forum, when OYO only agreed to refund for one day. Supporting the claims of plaintiff, the forum found his documentation to be thorough and conclusive. The forum could come to conclusion that OYO had failed when it comes to provide service. Hence, imposing costs on OYO, the consumer court rules in favour of the complainant, Aggarwal.

As a result of rule in favour, it was directed by OYO to comply with the order within a period of 45 days starting from February 1, failing the compliance of which would lead to interest accrual on the directed amount.


Rohit Kulkarni
Rohit Kulkarni
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