OYO Faces FIR by Jaipur-Based Resort OYO Faces FIR by Jaipur-Based Resort Over Alleged GST Irregularities Worth INR 2.66 Cr

• ByStartupStory     |    April 15, 2025

Jaipur-based Samskara Resorts has reportedly filed a First Information Report (FIR) against hospitality giant OYO and its cofounder Ritesh Agarwal after receiving GST show cause notices amounting to INR 2.66 Cr. The FIR, filed last week at Jaipur’s Ashok Nagar police station, accuses OYO of providing “incorrect information” that led to the issuance of the notices.

Madan Jain, associated with Samskara Resorts, has named OYO, Ritesh Agarwal, and several others in the FIR under charges of cheating, criminal breach of trust, forgery, and criminal conspiracy as per the newly enacted Bharatiya Nyaya Sanhita (BNS).

As per the FIR, Samskara Resorts signed an agreement with OYO on April 18, 2019, for a duration of 12 months. During this period, the resort claims it saw business transactions totalling INR 10.95 Lakh and duly paid the applicable GST. However, the FIR alleges that OYO reported inflated bookings worth INR 22.22 Cr for the financial years 2018-19, 2019-20, and 2020-21, resulting in pending GST dues and penalties amounting to INR 2.66 Cr.

Hotel Federation of Rajasthan president Husain Khan commented, “As many as 20 hotels have received GST notices on the basis of ‘inflated bills’ allegedly shown by OYO.” He added, “OYO has had a ‘poor record’ with hotels,” and recalled that the Federation had campaigned against the company four years ago.

This development comes just weeks after Ritesh Agarwal internally informed OYO employees via email that the company was on track to clock a 60% year-on-year revenue growth in Q4 of FY25, reaching INR 2,100 Cr.

“A key contributor to this performance has been the successful integration of G6 Hospitality, adding INR 275 Cr to our revenue,” Agarwal mentioned in the internal communication.

OYO recently marked its first profitable fiscal year in FY24, posting a net profit of INR 229 Cr compared to a net loss of INR 1,286.5 Cr in the previous year. However, the company’s revenue saw a slight dip of 1.3%, closing FY24 at INR 5,388.78 Cr, down from INR 5,463.9 Cr in FY23.

Founded in 2012 by Ritesh Agarwal, OYO operates a wide range of properties including holiday homes, casino hotels, coworking spaces, budget hotels, and corporate stays. The startup has raised close to $4.5 Bn in funding and counts SoftBank Group and Microsoft among its major backers.

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