Oyo gets two weeks to disclose debt-free assets

The Delhi High Court has asked SoftBank-backed Oyo Hotels & Homes to file an affidavit in the court in two weeks on its unencumbered assets.

The July 7 order came in a case filed by hospitality company Anam Datsec, which has accused Oyo of non-payment of dues for its Golden Sands property at Calangute in Goa and sought more than Rs 8 crore in damages.

Anam Datsec claimed that Oyo had agreed to pay Rs 14 lakh a month as the minimum guaranteed amount when it entered into a management services agreement with the company for the property in 2018. It said Oyo did not also provide necessary and accurate revenue statements and carried out “substandard and hazardous construction” on the property.

Oyo had invoked the force majeure clause in March, after the Indian government announced a nation-wide lockdown. By invoking the clause, Oyo sought to suspend minimum payment guarantees agreements with hotel partners, and terminated contracts with several partners since March.

Most of the hotel owners who received notices from Oyo operate ‘Townhouse’ hotels in partnership with Oyo. Townhouse is positioned by Oyo as a “mid-market boutique hotel brand” and is present across 19 cities, operating on a franchise model. While a few hoteliers like Golden Hotels have decided to take legal action, others are trying to negotiate with other hotel aggregators or sell their properties to new buyers.