The Managing Director/CEO’s/Owners/ Director/Partners/General Managers
All FHRAI Members
CC: All members of Executive Committee
All Regional Associations
President FHRAI
SUBJECT: DISCLAIMER IN REGARD TO OYO’S FALSE CLAIM OF SETTLEMENT OF DUES THROUGH FHRAI
Dear Member,
It has been reported by our members and non-members that OYO is claiming to have initiated a process of settlement of unpaid dues of hotel members through FHRAI and / or that OYO has initiated settlement of outstanding dues under the aegis or support of FHRAI.
In this regard, members are hereby advised to note that FHRAI has not entered into any kind of agreement or involvement with OYO for settlement of dues or for resolution of grievances of the hotel partners.
As you all are well aware that OYO is responsible for the systemic depredation of the budget hotels segment in the country causing serious distress to thousands of hotels and its patrons. The unscrupulous business practices of OYO have destroyed the livelihood, investments and entrepreneurial initiatives of thousands of hoteliers from the mid and lower segments. Needless to state that large amounts of dues of hotels still remain unpaid by OYO thereby plunging many hotels into severe losses and compelling them to litigate in courts.
For the aforesaid reasons and in the larger interest of the Hotel Industry in India, FHRAI has been fighting tooth and nail against the arbitrary and unethical business tactics of OYO, for the last many years. In this regard in 2019 FHRAI had filed complaints to the CCI against Go-MMT and OYO for their alleged malpractices that virtually denied any level-playing field to the hotels. Based on our complaints, CCI identified a case for investigations under Section 26(1) of the Competition Act, 2002. After the investigation, the CCI found OYO guilty of anti-competitive activities and imposed penalty of Rs.168 crore on OYO. FHRAI had also intervened in the insolvency proceedings before the NCLAT initiated against OYO. FHRAI had also filed petitions before SEBI requesting to reject OYO’s IPO plans as also requested Ministry of Tourism and the Govt of India to look into the affairs of OYO and take cognizance of victimization of stand-alone small hotel owners across India.
Considering the above-mentioned facts and the present-day situation where no material change has taken place in the conduct of OYO, FHRAI strictly denies the false propaganda of FHRAI’s involvement with OYO for settling the dues of hotel members as bogus and fake. Furthermore, please be informed that FHRAI does not advocate or even suggests that members / hotels must forgo their legitimate claims and settle for substantially lower amounts towards their legitimate unpaid dues. Hence, members are requested to take informed decisions.
Meanwhile, members may send / forward all fresh instances of malpractice, coercion, misrepresentation with regard to settlement of dues through FHRAI etc to Ms. Payal Swamy, Assistant Secretary General at asg@fhrai.com at the earliest so as to enable FHRAI to take necessary remedial steps.
FHRAI is pledged to work towards creating a conducive and business-friendly environment for the hospitality sector and look forward to continuous support and patronage from our members.
With best regards,
Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off. : B-82, 8th Floor, Himalaya House, 23, K G Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Web.: www.fhrai.com