The District Consumer Disputes Redressal Commission, Haridwar, has held OYO Rooms Pvt. Ltd. liable for deficiency in service after a consumer was denied accommodation despite possessing a confirmed hotel booking.
The complaint arose when Rajtrehan booked a room through OYO for a stay at Days Inn Studio House in Bhuj, Gujarat, for ₹1,528. Upon arriving at the hotel on 24 September 2019, the consumer and his companion were allegedly refused accommodation. The hotel cited an internal payment dispute with OYO as the reason for denying the booking.
To address the issue, OYO arranged an alternative hotel booking. However, the complainant claimed that the substitute accommodation was more expensive, costing ₹1,879, offered fewer facilities, and required additional travel expenses of ₹150.
After unsuccessful attempts to obtain reimbursement, including a complaint before the National Consumer Helpline, the consumer approached the District Consumer Disputes Redressal Commission, Haridwar, alleging deficiency in service.
OYO argued that it merely functions as an online booking platform and does not directly operate hotels. It further contended that it had offered refunds, discount vouchers, and compensation to the complainant. According to OYO, the complainant declined these offers.
Upon examining the evidence, the Commission found that the original booking had indeed not been honoured. It noted that OYO subsequently arranged alternative accommodation but failed to promptly reimburse the consumer for the additional expenditure incurred. The Commission observed that OYO's own correspondence acknowledged the consumer's grievance.
The Commission held that OYO's delayed response and failure to immediately compensate the consumer constituted deficiency in service. It rejected the argument that OYO could completely avoid responsibility by characterising itself solely as an intermediary platform.
Allowing the complaint against OYO, the Commission directed the company to pay ₹1,879 towards the cost of the alternative accommodation and ₹150 towards transportation expenses. It further awarded ₹15,000 as compensation for mental agony and physical hardship and ₹8,000 towards litigation costs.
The Commission ordered payment within 45 days, failing which the awarded amount would carry simple interest at 10% per annum from the date of filing of the complaint until realization.
Case Title: Rajtrehan v. OYO Rooms Pvt. Ltd. & Anr.
Case No.: DC/50/CC/12/2022