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Income tax officials conduct surprise search at SoftBank-backed Oyo

The news comes at a time when Oyo's major shareholder SoftBank faces renewed investor scrutiny after being forced to bail out one of its best known portfolio companies

Reuters  |  Bengaluru/Hong Kong 

This fresh round of funding is separate from the recent $1.5 billion share buyback orchestrated by Agarwal

Oyo Hotels and Homes said on Friday income tax authorities had carried out a surprise search at one of its four offices in Gurugram. "There is a routine TDS survey in progress in one of our offices. We are cooperating with the authorities, and are committed to engaging with all relevant stakeholders," an Oyo spokeswoman said.

It was not immediately clear what prompted the search and Oyo did not elaborate. The director general of investigation at India's Income tax department could not be immediately reached for comment.

The comes at a time when Oyo’s major shareholder faces renewed investor scrutiny after being forced to bail out one of its best known portfolio companies, the cash-burning, office-sharing firm WeWork, for about $10 billion last year.

The latest development adds to Oyo's challenges as it faces backlash from some hotel owners in India who say they have been blindsided by hidden fees.

In November, internal projections showed Oyo's India business will likely make losses until 2021.

First Published: Sat, January 11 2020. 01:43 IST
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