Homegrown hospitality unicorn OYO Hotels and Homes has been asked by the Delhi High Court to file an affidavit by 21st July on its debt-free assets.
This comes in after hospitality company Anam Datsec filed a case on 7th July against the SoftBank-backed OYO, accusing the firm of non-payment of dues for its Golden Sands property at Calangute, Goa. Datsec sought over Rs 8 crore in damages as compensation.
When the two entered into a management services agreement, the company claimed that OYO had agreed to pay Rs14 lakh per month as a minimum guaranteed amount for the property.
OYO told ET (1) that the court had given it a two weeks’ time to file its reply to the petition. An OYO spokesperson stated, “It is to be noted that no interim relief has been granted by the Delhi High Court to the petitioners.” The matter has now been listed for 20th August.
The legal notice also stated that OYO didn’t provide necessary and accurate revenue statements and carried out “substandard and hazardous construction” on it.
This is another incident, especially since 2019, where OYO has found itself in another legal tangle for non-payment of its dues on time.
After the story was published, a spokesperson from OYO said that the Delhi HC, after hearing OYO’s submissions, was pleased not to pass any interim order in the matter. It rather gave OYO time to file its reply to the Section 9 petition filed by hospitality firm Anam Datsec within two weeks, and Datsec has been given another two weeks’ time to file the reply.