The District Consumer Disputes Redressal Commission in Ludhiana has found OYO Hotels Pvt Ltd and a Delhi-based hotel guilty of deficiency in service and engaging in unfair trade practices. The ruling came after a Ludhiana resident was denied accommodation despite having a confirmed booking, compelling him and his companions to spend the night in their vehicle.
Case Background
The commission, led by President Sanjeev Batra and Member Monika Bhagat, partially allowed a consumer complaint filed by Gurpreet Singh Anand, a resident of Model Town Extension, Ludhiana. The court directed OYO Hotels and Hotel Yatari Palace, located near Nizamuddin Railway Station in New Delhi, to jointly refund the booking amount and pay composite litigation costs of Rs 10,000.
Details of the Incident
According to the complaint, Gurpreet Singh booked a room for three people through OYO on January 16, 2023, for a stay at Hotel Yatari Palace from January 17 to 18, 2023. OYO confirmed the booking and issued a booking ID. The complainant also made a partial payment online.
Gurpreet Singh stated that due to travel delays, he and his companions arrived at 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 they dialed another number provided by OYO customer care, the hotel representatives refused to share the location and denied accepting 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 finding temporary shelter at another nearby hotel.
Legal Proceedings
The complainant further submitted that legal notices and emails sent to OYO after the incident went unanswered. Alleging mental harassment, inconvenience, and financial loss, he sought compensation from the opposite parties.
During the 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.
Commission's Observations
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 evidence to show it had taken effective steps to assist the complainant when he faced difficulties.
The commission noted 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' (Guest is God).
Order
Consequently, the commission directed the opposite parties to refund the Rs 176 received as an advance booking amount and pay Rs 10,000 as composite costs to the complainant within 30 days of receiving the order.
