OYO has approached the Delhi High Court seeking to restrain media from reporting on a Rajasthan FIR alleging fake bookings. The Court allowed OYO to share its side of the story with news outlets.
New Delhi: The Delhi High Court has recently heard a case filed by OYO Hotels & Homes (OYO), a well-known hospitality company, where it requested the Court to stop certain news websites and media portals from publishing news stories that the company claims are defamatory. These news reports are about an FIR (First Information Report) filed in Rajasthan against OYO and its founder, Ritesh Agarwal.
The matter was heard by Justice Amit Bansal. After listening to the arguments, the Court did not give any immediate relief (interim order) to OYO but issued notices to the defendants, which include various media outlets. The Court also gave OYO the permission to share its version of the story with the news publications, including a copy of the Rajasthan High Court’s stay order on the FIR.
the Court ordered,
“In the said event, the news publications shall duly publish the same,”
This legal trouble for OYO is linked to ongoing regulatory and legal issues related to hotel operation laws, taxation rules, and consumer rights in India. Authorities and several hotel associations have raised serious complaints against OYO, accusing the company of unfair business practices. These complaints mainly come from hotel owners in Rajasthan, especially in cities like Jaipur, Udaipur, and Jodhpur.
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The main accusations include:
- Using deep discounting methods that harm partner hotels
- Making payments to hotel partners after delays
- Changing contract terms without informing or discussing with hotel owners
- Not properly depositing GST (Goods and Services Tax) collected from customers on hotel bookings
One such hotel, Samskara Resort in Jaipur, filed a police complaint (FIR) against OYO and its founder, Ritesh Agarwal. The resort alleged that OYO showed fake bookings worth Rs 22.5 crore to falsely increase their revenue. This led to a GST notice being sent to the resort. The FIR also mentioned that OYO used similar methods in dealings with several hotels across Rajasthan, which has now resulted in tax recovery actions from the authorities.
However, on April 23, 2025, the Rajasthan High Court passed an order staying any coercive action against OYO regarding this FIR. This means no forceful steps can be taken against the company at the moment in this case.
Now, OYO has approached the Delhi High Court, arguing that the FIR is false and was filed with bad intentions. The company said that many media reports about the FIR gave only one side of the story and did not ask OYO for its response before publishing the news.
Senior Advocate Satvik Varma, representing OYO in Court, said that the reports published about the FIR by Samskara Resort were harming OYO’s image and were published without giving OYO a chance to respond.
Varma said,
“Several news articles relating to the FIR filed by Samskara Resort in Jaipur were published without seeking comments from the company, thereby disparaging OYO’s name and the mark,”
He also told the Court that OYO wanted either a complete stop to the publication of such articles or at least permission to share its side of the story with the public.
he argued,
“In light of the Rajasthan High Court stay, an ex-parte order restraining the news publishers from publishing malicious articles against OYO” should be passed.”
He also asked for the Court’s help to stop the media from using OYO’s brand name or the personal image of Ritesh Agarwal in any defamatory content.
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Though the Court refused to give a stay order at this stage, it agreed that OYO can approach news websites and provide its own version of what happened. The Court clearly said that these media portals should publish OYO’s version if it is submitted along with the Rajasthan High Court’s stay order.
the Court stated again,
“In the said event, the news publications shall duly publish the same,”
Senior Advocate Satvik Varma was joined by Advocates Manish Dhir, Shantanu Parmar, and Balram in representing OYO, legally known as Oravel Stays Limited.
This legal development is important as it highlights the ongoing challenges faced by large tech-enabled companies like OYO when they are accused of wrongdoing by business partners. It also shows how courts can allow companies to protect their reputation while ensuring fair media practices.
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