The Sikkim Hotels & Restaurants Association (SHRA) on Sunday, 24th November received a joint complaint signed by a group of about 40-50 OYO Hotel Owners of Gangtok in which they expressed dissatisfaction over working with the working of OYO and alleged fraud, payment issues, violation of contract, non-transparency accounts, arbitrary charges and deductions, and gross mismanagement.
All OYO hoteliers unanimously complained that they have been defrauded by OYO which had tied up with them promising various benefits for a commission ranging from 15-20 per cent.
“However much to their shock, OYO unilaterally revised the commission to 23 per cent, increased Platform Fees to 5 per cent, taking the overall commission to 28 per cent without consent of hoteliers and in violation of the signed agreement. Over and above this, various hidden charges such as 3C Penalty, Walk-in Penalty, Audit Penalty, GST deductions etc which were not disclosed earlier have been deducted from payments made to them. Surprisingly they are charged commission even on No-Show or Cancelled bookings and fake bookings,” stated SHRA in a press communiqué.
It added, “Surprisingly despite having a local GST number with a local registered address, however, OYO, in reality, does not even have any such office at the given address or anywhere in Gangtok. OYO accountants or representatives seldom visit Gangtok to resolve issues. Repeated emails and calls also go un-responded. Even mail to OYO Partner Support results in just a ticket being generated but no resolution.”
The SHRA also stated that the hoteliers wishing to Quit OYO are not being given clearance despite them serving the required termination period.