The Delhi High Court on Wednesday issued notice on a plea filed by OYO Hotels & Homes, which seeks to restrain media outlets from publishing allegedly defamatory reports about the company and its founder, Ritesh Agarwal.
The reports in question pertain to an FIR registered against the hospitality aggregator in Rajasthan.
Justice Amit Bansal, who heard the matter, allowed OYO to present its version of events to the concerned media publications along with a copy of the Rajasthan High Court's order, which had earlier stayed any coercive action in the case. The Court directed that, should OYO do so, the media outlets are to duly publish the company's version.
The legal dispute arises from a complaint filed by Samskara Resort in Jaipur, which accused OYO of inflating revenues through fake bookings worth ₹22.5 crore, resulting in a GST notice. Similar allegations have surfaced from hotel owners in Jaipur, Udaipur, and Jodhpur, who claim the company engaged in unfair trade practices, delayed payments, unilateral contract modifications, and tax irregularities.
In response, OYO has termed the FIR false and malicious, asserting that news coverage of the matter has been one-sided and damaging. The company argues that media outlets published reports without seeking its response, thereby harming its reputation and that of its founder.
Appearing for OYO, Senior Advocate Satvik Varma submitted that numerous articles based on the FIR were published without giving the company an opportunity to present its stance. He requested the Court to either pass an ex-parte order restraining such publications or, in the alternative, allow OYO to disseminate its own account of the events.
Additionally, OYO sought directions to restrain the use of its trademark and images of Ritesh Agarwal in these reports.
Although the Court declined to issue an interim restraining order at this stage, it permitted OYO to circulate its version of the story to the publications in question.
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