The District Consumer Disputes Redressal Commission, Ludhiana, has held OYO Hotels Pvt Ltd, and a Delhi-based hotel, guilty of deficiency in service and unfair trade practice for denying accommodation to a Ludhiana resident despite a confirmed booking, forcing him and his companions to spend the night in their car.
The commission, comprising president Sanjeev Batra and member Monika Bhagat, partly allowed a consumer complaint filed by Gurpreet Singh Anand of Model Town Extension, Ludhiana. It directed OYO Hotels and Hotel Yatari Palace, New Delhi, to jointly refund the booking amount and pay composite litigation costs of Rs 10,000.
According to the complaint, Gurpreet Singh had booked a room for three persons through OYO on January 16, 2023, at Hotel Yatari Palace near Nizamuddin Railway Station, New Delhi, for January 17-18, 2023. OYO confirmed the booking and issued a booking ID. The complainant had also made a part payment online.
Gurpreet Singh stated that due to travel delays, he and his companions reached the hotel premises around 1.30 am on January 18, 2023. However, despite repeated attempts, they could not locate or contact the hotel. He alleged that the WhatsApp number provided by the hotel was non-functional. When another number supplied by OYO customer care was dialled, the hotel representatives allegedly refused to share the location and denied that they accepted OYO bookings.
As a result, the complainant and his companions could not check in and were forced to spend the rest of the night in their car before getting temporary shelter at another nearby hotel.
The complainant further submitted that legal notices and emails sent to OYO after the incident received no response. Alleging mental harassment, inconvenience and financial loss, he sought compensation from the opposite parties.
During proceedings, Hotel Yatari Palace failed to appear before the commission and was proceeded against ex parte.
OYO contested the complaint but admitted that a confirmed booking existed and that advance payment had been received.
While examining OYO’s guest policy, the commission observed that the company was obligated to provide alternative accommodation or a refund if a guest was denied check-in despite a confirmed booking. However, OYO produced no material to show it had taken effective steps to assist the complainant when he faced difficulties.
The commission observed that the conduct of the hotel and OYO amounted not only to deficiency in service and unfair trade practice but was also contrary to the spirit of the Indian hospitality principle of “Atithi Devo Bhava”.
Consequently, the commission directed the opposite parties to refund the Rs 176 received as advance booking amount and pay Rs 10,000 as composite costs to the complainant within 30 days of receiving the order.
