You are here: Home » Companies » News
Calling for regulation only of communication OTTs, need compensation: COAI
Business Standard

NCLAT stays CCI's Rs 169 cr penalty on Oyo, orders deposit of amount's 10%

The National Company Law Appellate Tribunal directed Oyo to deposit of 10 per cent of the penalty amount within six weeks

Topics
NCLAT | Oyo | CCI

Press Trust of India  |  New Delhi 



Oyo, Oyo rooms
Photo: Shutterstock

The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed a Rs 169 crore penalty imposed on Oravel Stays Ltd by the competition commission of India (CCI).

Oravel Stays Ltd operates under the brand name .

However, a two-member bench while admitting the appeal filed by Oravel Stays Ltd (OSL) directed to deposit of 10 per cent of the penalty amount within six weeks.

"The appeal is admitted subject to a deposit of 10 per cent of the penalty amount which must be deposited within a period of six weeks. Deposit should be in the form of FDR in favour of Registrar, NCLAT," the order said.

The appellate tribunal has directed to list the matter on April 11, 2023, for the next hearing.

"In the meanwhile, Counsel for the parties are granted liberty to complete pleadings, which must be completed before the first week of February 2023," the said.

Besides the fair trade regulator CCI, OSL has also made the Federation of Hotel and Restaurant Associations of India (FHRAI), Ibibo Group, MakeMyTrip India, Ruptub Solutions and Casa2 Stays parties.

The is an appellate authority over the orders passed by .

Last month, slapped penalties totalling more than Rs 392 crore on online travel firms MakeMyTrip, Goibibo and hospitality services provider for unfair business practices.

A fine of Rs 223.48 crore was slapped on Make My Trip-Goibibo (MMT-Go) and Rs 168.88 crore on .

Among others, it was alleged that MMT-Go imposed a price parity in their agreements with hotel partners.

Under such pacts, the hotel partners are not allowed to sell their rooms on any other platform or on its own online portal at a price below the price at which it is being offered on the two entities' platforms.

Besides imposing penalties, the Competition Commission of India (CCI) has directed MMT-Go to "suitably modify its agreements with hotels/chain hotels to remove/ abandon the price and room availability parity obligations imposed by it on its hotel/ chain hotel partners with respect to other OTAs (Online Travel Agencies)".

Also, had asked it to modify agreements to do away with certain exclusivity conditions.

The regulator ordered a detailed investigation into the matter in October 2019.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Tue, November 22 2022. 22:09 IST

RECOMMENDED FOR YOU

.