Customer Victory: OYO Faces Penalty of ₹25000, Full Refund was Ordered by Consumer Forum.

The hospitality chain OYO was recently ordered by the District Consumer Disputes Redressal Commission in Gurgaon to provide a full refund of ₹3,461 to a client whose three-day hotel reservation was dishonoured for one day.

Oyo was also ordered to pay ₹11,000 in legal fees and ₹25,000 in damages to the customer, a lawyer who had reserved the accommodation for a visitor, by the consumer forum president, Sanjeev Jindal, along with members Jyoti Swatch and Khushwinder Kaur.

Advocate Vibhor Aggarwal reserved a room at “Hotel New Sunshine” for his visitor in December 2021, with a three-night stay scheduled from December 30, 2021, to January 2, 2022.

The hotel refused the guest’s request to remain on December 31, even though the booking was confirmed, under an excuse that the day was already fully reserved. Aggarwal, the plaintiff, was compelled by this to make a new reservation for the visitor for December 31, 2021. 

The complaint and his visitor experienced significant inconvenience and distress as a result of the hotel’s conduct, therefore they sent OYO a formal notice requesting a complete refund and damages of ₹50,000. The complaint was submitted to the consumer forum since OYO only agreed to give a refund for a single day.

The consumer forum stated that the complainant’s “accurate, brief, and concise” documentation proof, which he had placed on file, completely supported the claims he had made.

It was determined that there was no question in the mind regarding the OYO’s service deficit.

The discussion on the aforesaid pleas/defences taken by the OP would not only be unnecessary and irrelevant but also that the same would unnecessarily overburden this judgment, the said defences/pleas being false, frivolous, baseless and misconceived, etc.,”The consumer court concluded.

As a result, OYO was found guilty by the consumer forum of providing inadequate service to the complaint, and his plea was accepted with costs. 

The opposite party shall make the compliance of this order within 45 days from the date of uploading of this order after the expiry of 24 hours (one day) therefrom, failing which the amount will attract interest @ 12% per annum, for the same period, till actual realization,” it included in the order dated February 1.

Along with advocate Bhupinder Yadav, the complainant, Vibhor Aggarwal, made an in-person appearance.

OYO was represented by Advocate Sandeep Yadav.

[ Read the Order ]

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