Delhi HC restrains hotel associations from strikes against OYO

OYO is not going for any soft approach against hoteliers and any association that will favour boycott and hamper the business of Softbank-backed company.

This stern warning comes after several hoteliers threatened for boycott and protest against the Gurugram-based firm. It also alleged that most of the boycott claims are being made by small vested interest groups with no property franchised with or leased to OYO Hotels.

The company will take legal action against such association and individual who are threatening to cancel agreements and not accept online bookings as it is a violation of the contractual arrangements made between the two parties.

Amidst ongoing issue, Delhi High Court has also come with a relief for the company as it has restrained various hoteliers welfare associations from issuing any notices or boycotting and banning the hospitality company.

The court has learned that the act of pushing others to join the campaign is indeed a breach of contract and such entities would be liable for legal action.

Following the string of protests across the country, Kerala Hotel and Restaurant Association (KHRA) had called for a strike against OYO. About 67 partner hotels were going for a strike for two days starting from Wednesday (i.e; yesterday).

It's not known whether the association has been protesting or not at the moment.

These hotel owners have been alleging that OYO has been pushing them for bearing discount on the company's behalf, late payment and complicated contracts.

OYO, on the other hand, has been looking to expand its business and planning to infuse more capital. According to media reports, it is investing Rs 200 crore for ramping up Gurugram business and kept Rs 100 crore for improving infrastructure and talent in Kerala.

Of late, Chinese media reports have claimed that OYO is going for a mass layoff in the county, however, OYO has strongly denied such reports and said that they are providing jobs for lakhs of people in the country and planning for more capital infusion and fresh hiring.