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OYO Held Accountable for Deficiency in Service: Consumer Court Orders Refund and Compensation

Case Title: Vibhor Aggarwal vs. OYO Hotels and Homes Pvt. Ltd.
Case No: Consumer Complaint No. 153/2022
Decision Date: February 1, 2024
Forum: District Consumer Disputes Redressal Commission, Gurgaon

Case Overview

Vibhor Aggarwal filed a complaint against OYO Hotels for deficiency in service after his guest was denied a pre-confirmed hotel booking on December 31, 2021. Despite assurances of a "hassle-free stay," OYO failed to honor the booking at "Hotel New Sunshine" (Booking ID VJM45181). The guest had to vacate the hotel and check into another OYO property, incurring additional costs and significant inconvenience.

Key Allegations by the Complainant

1. Non-fulfillment of Confirmed Booking: OYO failed to secure the reservation despite confirming it via email on December 21, 2021.
2. Failure to Respond: OYO's representatives did not provide any resolution when contacted.
3. Additional Expenses and Hassle: The guest had to book another hotel for one night, causing unnecessary inconvenience and financial loss.
4. Legal Notice Ignored: OYO did not respond adequately to the complainant's demand for a refund and damages.

Court's Findings

The Commission found OYO guilty of deficiency in service and unfair trade practices, citing:

• Documentary Evidence: Emails (Ex. CW1/B and CW1/G) confirmed OYO's acknowledgment of the booking and subsequent issues faced by the complainant.
• Failure to Honor Booking: The court observed that OYO's inability to ensure the stay contradicted their service guarantees of an "assured check-in" and "hassle-free experience."
• Lack of Justifiable Defense: The Commission dismissed OYO's claims as baseless and irrelevant.

Judgment

The District Consumer Forum ruled in favor of the complainant and directed OYO to:

1. Refund Booking Amount: ₹3,461 with 9% interest per annum from December 21, 2021, until realization.
2. Compensation for Mental Agony: ₹25,000 for causing harassment and loss of reputation.
3. Litigation Costs: ₹11,000 for legal expenses.

Compliance Timeline:
OYO must comply within 45 days of the order. Failure to do so will attract 12% interest per annum on the awarded amounts.

Legal Consequences of Non-Compliance:
If OYO fails to comply, the complainant can initiate an execution petition under Section 71(1) of the Consumer Protection Act, 2019, and OYO may face prosecution under Section 72, leading to fines or imprisonment.