NCLAT stays CCI imposed penalty against OYO
Earlier on November 15, OYO filed an appeal before NCLAT seeking a stay of the CCI order that imposed a penalty of Rs 169 crore.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the penalty of Rs 169 crore imposed by the Competition Commission of India (CCI) upon hotel aggregator unicorn .
Earlier on November 15, OYO had on filed an appeal before NCLAT against the CCI order of October 19 levying a penalty of Rs 168.88 crore on the hospitality and travel tech firm for indulging in anti-competitive practices.
A NCLAT Division Bench, comprising Justice Rakesh Kumar, Member (Judicial) and Ashok Kumar Mishra, Member (Technical), however, directed OYO to deposit 10 percent of the penalty amount.
Commenting on the matter, Jaison Chacko, Secretary General, Federation of Hotel & Restaurant, Associations of India (FHRAI), stated,
“The latest development of Hon’ble NCLAT ordering Oyo to deposit 10% of the total fine of Rs 168 crore imposed by the CCI is yet another positive step in the interest of the hospitality sector in the country. As a result, Oyo is now required to pay close to Rs 17 crore as the initial monetary fine to ensure hearing of their appeal in the Hon’ble NCLAT. FHRAI will continue to pursue the matter further for the benefit of thousands of small and budget hotels in the country and to discipline the OTAs in the new digital era so as to ensure a fair market, healthy competition and a level playing field for all stakeholders."
OYO, along with its appeal, has also moved an application seeking an immediate interim stay on the order of CCI contending that if it is directed to pay the penalty, it would be forced to forego business returns that the same would generate when employed in its business. No loss will be caused in the event the levy of penalty is stayed by the Tribunal till the disposal of appeal, argued OYO.
Edited by Saheli Sen Gupta