Consumer Court Holds OYO and Guest House Accountable for Unfair Trade Practices, Orders Compensation for Lost Academic Opportunity
A District Consumer Disputes Redressal Commission in Thoothukudi, Tamil Nadu, has directed OYO founder Ritesh Agarwal and a Chennai guest house to jointly pay over ₹16 lakh in compensation after a failed hotel booking dashed the academic aspirations of a law student.
The complainant had booked a hotel in Chennai for three days in 2022, as his younger sister, an aspiring law student, was to appear for the All India Law Entrance Test (AILET). Despite making an advance online booking, the hotel refused to honor it, and even the alternative hotel arranged by OYO failed to provide accommodation.
Faced with no other choice, the brother and sister booked a guest house at a higher rate, only to encounter further issues. The complainant alleged that this ordeal took a toll on his sister’s mental state, causing her to perform poorly in the exam and miss her opportunity to secure admission to a prestigious National Law University (NLU).
In a ruling issued on July 25, Commission President A Thiruneela Prasad and members N Namachivayam and A Sankar held that the unfair trade practices of OYO and the guest house had significantly impacted the young girl’s academic future. The court ordered the respondents to pay:
– ₹6,797 for the booking and travel expenses,
– ₹1.23 lakh for the sister’s course fees,
– ₹10 lakh as compensation for the sister’s shattered dreams, efforts, and wasted time,
– ₹5 lakh for mental anguish caused to both the complainant and his sister,
– ₹10,000 for legal costs.
The court emphasized that the defendants’ negligence had turned the sister’s dream and hard work into a “mirage.” The order was passed ex-parte as neither OYO nor the guest house appeared before the court.
Update from OYO
“Oyo clarified to Courtroom’s team that order does not accurately reflect the actual circumstances surrounding this particular booking. The complainant had reserved a hotel that ceased to be a part of OYO’s network just a few hours after the booking was made. The guest was promptly informed about this development, and we immediately offered alternative accommodation at another hotel.
OYO was neither involved in the litigation nor part of the court proceedings. We plan to appeal against the order and present the facts from our side.”
(With inputs from agency)
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