OYO Rs 22 crore scam: Fake bookings, GST evasion and legal heat on Ritesh Agarwal

OYO Room

OYO, this name that needs no special introduction. This company, which has simplified the hotel room booking process, has a good reputation worldwide. Meanwhile, OYO, which is often in the news, has made it to the news this time with a fraud of Rs 22 crore. There are allegations that OYO is earning money in the name of fake bookings. In this order, a case of fraud of Rs 22 crore has been registered against OYO owner Ritesh Agarwal.

What is the fraud? Some hotel owners in Jaipur, Rajasthan have alleged that OYO has cheated them. Allegations have been made that OYO has earned money by making fake bookings in their hotels. News has come that OYO has increased its income by booking hotels in a wrong way, due to which the hotels have suffered severely.

Hotel Federation of Rajasthan President Hussain Khan has expressed concern over this matter. He said that this has become a big problem for hotel owners. A hotel operator has alleged that OYO founder Ritesh Agarwal has committed a fraud of Rs 22 crore. An FIR has also been registered. More than 10 hotel owners in Jodhpur have received notices from the State GST and Central GST.

How does the fraud happen? Hotel owners have alleged that hotels are first booked online through OYO and cancelled after some time. GST is collected for this, which has to be paid by the hotel owners. Allegations have been made that OYO is earning money in this wrong way. Currently, an investigation is underway regarding this.