New Delhi, Sep 17 (PTI) Hotel industry body FHRAI on Thursday came out in support of a Chandigarh-based hotelier who has filed an FIR against Oyo founder and Group CEO Ritesh Agarwal alleging manipulation of their agreement, a charge strongly denied by the hotel-booking startup.

"In the FIR, the hotelier has stated that the Oyo's top management abruptly wriggled out of a business agreement illegally and with criminal intent," the Federation of Hotel & Restaurant Associations of India (FHRAI) said in a statement.  

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The FIR has been filed with Mohali Police by hotelier Vikas Gupta against Ritesh Agarwal as well as Oyo's brand Weddingz.in CEO Sandeep Lodha.

"Disruptions caused by the pandemic have affected businesses everywhere, but Oyo now has resorted to manipulating agreements to coerce hoteliers out of it. It is evident in Vikas Gupta's case Oyo could not keep its commitment in the agreement," FHRAI VP Gurbaxish Singh Kohli said.  

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Not only did Oyo decide to abandon a business going through its worst phase, it further tried to intimidate the hotelier with penalties running into crores, he alleged.  

Vikas Gupta, owner of Vikas Mineral Foods Pvt Ltd (VMFPL), said in a statement, "Fearing losses, Oyo hatched a premeditated conspiracy, and which were against terms of the signed agreement."

Refuting the charges, a spokesperson of Oyo Hotels & Homes said the company and all its businesses, including Weddingz.in, have always maintained the highest level of integrity, transparency and commitment to its venue partners.

Oyo at all times follows the laws of the land and operates keeping in mind the best interests of its venue partners, customers and employees, the spokesperson said in a statement.

"Disputes between the contracting parties are civil and commercial in nature and there is no criminality involved.

"Any disputes between the parties ought to be adjudicated by a duly appointed arbitral tribunal in accordance with the terms of the agreement between the parties and rules prescribed under The Arbitration Act," the statement added.

This matter is currently sub-judice and is under investigation. Hence, "we are not at the liberty of commenting on the merits of the matter. Having said that, our legal team is looking into the matter and taking all the necessary steps as these claims are incorrect and defamatory in nature," the spokesperson added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)