An FIR has been filed against Ritesh Agarwal, founder and CEO of Oyo Hotels and Homes Private Limited (OHHPL), and Sandeep Lodha, CEO of OHHPL’s Weddingz.in brand, for alleged fraud and conspiracy.
An Oyo spokesperson, however, disputed the charges against the company.
The case was recorded by Dera Bassi police last week after Chandigarh businessman Vikas Gupta alleged that OHHPL’s top management illegally and criminally sneaked out of a deal with him.
The deal was signed in 2019 with Manimajra-based Gupta’s company Vikas Mineral Foods Limited (VMFL), which manages the Casa Villaz Resorts marital palace in Dera Bassi.
Gupta, who held a press conference on Monday, said that he had submitted all the documents requested by the OHHPL and that after his senior management, including the financial and legal teams, were satisfied with the paperwork, the agreement allowing to manage Casa Villaz Resorts. .
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Things were going well until the Covid-19 outbreak, after which restrictions were placed on meetings for weddings and events.
Gupta alleged that OHHPL, fearing loss, concocted a premeditated conspiracy and, contrary to the terms of the agreement, sent him a notice on March 3, 2020 to resubmit the NOCs and other documents. Gupta said he received a 15-day notice to respond, while the agreement stipulated a 30-day notice period for any party wishing to terminate the agreement.
Gupta claimed that the documents OHHPL had wanted resubmitted were those it had previously delivered. Soon, however, OHHPL terminated the agreement.
The OHHPL then sent out a notice, Gupta alleged, and instead of paying him damages for ending the deal, it fined him about Rs 5 million (roughly) as “part of a criminal conspiracy to make huge money and easy through pressure. ” tactic.”
Refuting the charges, an Oyo spokesperson said late Monday: “OYO Hotels & Homes and all of its businesses, including Weddingz.in, have always maintained the highest level of integrity, transparency and commitment to their local partners and operate taking into account the mutual interests of its partners, clients and employees of the place. OYO refutes such unsubstantiated and advertising-oriented claims made against the company’s founder and other executives. ”
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Another accusation Gupta made was that in what appeared to be “criminal intent”, the OHHPL was still using the Casa Villaz Resorts name and “innocent people were scammed into booking marriages.” There was evidence that weddings had been booked through December 2020, Gupta said, adding that she was being made a scapegoat throughout the modus operandi.
A case under Section 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code (IPC) was registered against Ritesh Agarwal and Sandeep Lodha at Dera Bassi Police Station.
Oyo’s answer
In response, Oyo’s statement said: “On the present issue, the dispute between the contracting parties is of a civil and commercial nature and there is no criminality involved. Any dispute between the parties must be resolved by the arbitral tribunal and, furthermore, both parties have already appointed / proposed arbitrators in their arbitration notices, under the arbitration clause in the contract signed between both parties. Despite the same, these frivolous FIRs in matters that are essentially civil disputes are brought against renowned CEOs, young Indian businessmen only with the malicious intention of harassing the company and its top management and damaging the global reputation of OYO Hotels & Homes and India. as a global business destination. “
Qualifying these accusations as “unfounded, incorrect and of a defamatory nature”, Oyo’s statement read: “In a similar case in which an FIR was unfairly filed against OYO, the Honorable High Court of Karnataka, although it noted that the matter was of civil nature, granted relief in favor of OYO. OYO has placed its faith in the judicial system and will present its representations to the higher administrative authorities and the judiciary to ensure that justice prevails ”.
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