OYO Rooms Slapped with Huge Fine for Room Delivery Failure

OYO's Blunder

Ernakulam District Consumer Disputes Redressal Commission fined OYO Rooms INR 1.10 lakh for failing to deliver booked rooms to customers.

It was reported that a family suffered due to poor service and unethical business practices despite having booked rooms in advance through an online booking application. The complainant mentioned that when they arrived at the hotel at night with their children and elderly parents, they were denied rooms as per the booking, forcing them to travel a long distance to find another hotel. The court has directed the opposing parties to pay Rs. One hundred thousand will be compensated to the complainants, and court costs of Rs. 10,000 will be covered within 30 days, based on the complaint filed by Arun Das.

The complainant paid Rs. 2,933 to book rooms for one night at Mangalat Hotel in Kollam for a ten-member group that included his wife, children, and parents. When they arrived at the hotel around 10 p.m., the owner refused to provide the booked rooms. Additionally, the hotel demanded an extra charge of Rs. 2,500 per room. As a result, the complainant and his group had to travel overnight with their children and elderly parents to find another hotel.

The hotel owner stated in court that there is no agreement with OYO Rooms. However, this claim could not be substantiated. The President of the Consumer Commission, D B Binu, along with members V Ramachandran and T N Srividya, remarked that "the opposite parties have betrayed the trust of the complainant's family. As a result, the family has not only suffered financial loss but also considerable mental anguish. Our intervention is aimed at convincing the opposite party that customers should be treated with dignity and hospitality and delivering justice to the customer."