High court: The Rajasthan High Court has imposed an interim stay against OYO in case of alleged increase in earnings through fake booking of the resort. This ban has been imposed in the court of Justice Praveer Bhatnagar while hearing a petition filed by the company. Due to this incident, the resort operator has been given a GST notice of Rs 2.7 crore. After which Justice Praveer Bhatnagar, while hearing the petition filed by the company, made this ban and sought a reply from other parties in two weeks.
Accused of increasing earnings by showing fake booking
In the FIR, Samskara Resort in Jaipur accused Oyo of increasing its earnings by showing fake booking of Rs 22.5 crore, after which the GST notice was sent to the resort. The FIR claimed that OYO used a similar strategy in many hotels and resorts of the state, due to which notices of tax collection were sent to them.
Booking money goes directly to hotels and resorts
While advocating on behalf of Oyo, his senior advocates RB Mathur and script Garg said that the Samskara Resort had filed an appeal in the High Court for the tax recovery of the GST department. It was rejected by the High Court in March. RB Mathur said that after this the resort operators lodged an FIR against OYO on 9 April to avoid tax responsibility. Oyo works perfectly only on commission.
Booking money goes directly to hotels and resorts. It is the responsibility of the concerned hotel to pay tax on booking. To avoid tax responsibility, baseless allegations are being made against Oyo. On this, the court lodged someone in the FIR lodged against Oyo