Hospitality platform OYO is facing fresh legal trouble after a resort in Jaipur, Rajasthan, filed a police complaint accusing the company of financial misrepresentation that allegedly led to massive GST liabilities.
Madan Jain, owner of Samskara Resort, filed an FIR at Ashok Nagar police station alleging that OYO falsely inflated the resort’s revenue figures. This purportedly led to a ₹2.66 crore show cause notice from the GST department, despite the resort claiming actual earnings of only ₹10.95 lakh during their 12-month contract with OYO that began on April 18, 2019.
The FIR further alleges that OYO fabricated bookings for Samskara Resort for fiscal years 2018-19, 2019-20, and 2020-21—periods during which no agreement existed between the resort and the aggregator.
Jain contends that these “fraudulent” entries not only misrepresented business activity but also triggered a massive GST demand for taxes and penalties based on inflated sales figures reportedly amounting to ₹22.22 crore.
The controversy deepens as Hussain Khan, President of the Hotel Federation of Rajasthan, revealed that nearly 20 hotels have received similar GST notices allegedly due to OYO’s reporting practices. “OYO has a history of such actions,” Khan said, adding that the hotel industry in Rajasthan had previously launched a protest campaign, with over 125 hotels displaying banners refusing to accept OYO bookings.
This incident has reignited concerns among hotel operators about opaque billing and reporting practices by large travel-tech platforms, calling for tighter regulatory scrutiny.
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