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Zostel claims win in 3-year legal battle against OYO, latter refutes

Zostel could get upwards of $600 million if arbitration goes through

This fresh round of funding is separate from the recent $1.5 billion share buyback orchestrated by Agarwal
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Oyo has, however, denied these claims, saying "the Arbitration Tribunal has granted no specific relief to Zostel in terms of receiving ownership in Oyo

Neha AlawadhiSamreen Ahmad New Delhi/Bengaluru
Zostel, the backpacker hostels chain which was embroiled in a legal battle with Oyo for the last three years after merger talks broke down, claimed Sunday that it has won against Oravel Stays, which owns and operates hotel chain Oyo. Oyo however, refuted the claim. 

"Hon’ble tribunal held that the term sheet between Zostel and OYO was a binding agreement. The order stated that OYO breached the term sheet by not executing definitive documents due to Oyo’s internal issue. The tribunal recognised that the transaction was consummated as ZO Rooms transferred the entire business in 2016," said Zostel in a statement. 

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