5 min readNew DelhiJul 21, 2026 06:30 PM IST
A Kerala consumer commission recently found OYO Hotels and the property manager of one of its Puducherry hotels guilty of unfair trade practice and deficiency in service after they allegedly refused to allow a man to check into his pre-booked AC room unless he paid an extra Rs 800.
President P V Jayarajan and (members) Preetha G Nair and Viju V R directed OYO Hotels and its hotel manager to jointly refund the man’s Rs 415 booking amount and pay Rs 8,000 towards compensation and litigation costs.
The commission was hearing a complaint filed by one T S Ashish, a social activist, who allegedly booked a hotel through the OYO platform on November 9, 2023.
“At the same time, it is evident that the complainant, who booked the room in advance, was forced to wait for one hour for check-in to the room reserved by him by paying the entire amount in advance, which has caused much inconvenience, mental stress and financial loss, which is to be compensated by the opposite parties (OYO Hotels and the property manager),” the commission said on July 2.
Demanded Rs 800 extra
The man allegedly booked an AC room at OYO Hotel 12roomz in Kottakuppam, Puducherry, on November 9, 2023, paying Rs 414 in full through UPI. He claimed that his check-in was scheduled for 12 noon, and he reached the hotel by 11.45 am on the said date.
When hotel staff connected the man to the property manager over the phone, the manager allegedly demanded an extra Rs 800 and refused to let him check in without it. The man then called OYO’s customer care instead, and was allegedly asked to email his ID proof, after which an area manager assured him check-in would be sorted within 10-minutes.
However, the man claimed that he waited nearly an hour after this assurance and later left the hotel without occupying the room and emailed the same to OYO. He also alleged that OYO never issued him a bill or invoice for the payment, which he said violated the Consumer Protection (General) Rules, 2020.
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One hour-long wait,mental agony’
The bench examined email records that the man placed before it, including his complaint to OYO, his ID proof forwarded at 12.01 pm, and a further email at 12.54 pm stating he was leaving without checking in. It held that these showed that the man was ready and waiting at the property from noon until nearly 1 pm without being let into a room he had already paid for in full.
It also noted that OYO had received a legal notice from the man on November 11, 2023, well before the complaint was filed in December, and noted that both OYO Hotels and the property manager “did not even care to send a reply to the said notice”, now raising detailed defences before the commission.
It rejected the man’s claim for Rs 1 lakh in compensation for not providing supporting evidence of the actual financial loss suffered, but held that the hour-long wait itself amounted to proven mental agony and inconvenience.
Accordingly, the commission directed OYO and the property manager to jointly and severally refund the Rs 415 booking amount to the complainant, along with Rs 5,000 towards compensation for the mental agony and financial loss caused.
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The commission also directed OYO and its manager to pay Rs 3,000 towards the cost of the proceedings within 30 days from receipt of the order to comply, failing which the refund and compensation amount would carry 9 per cent annual interest until payment.
Oyo’s defence
OYO counsel Advocate Nithya S contested the claim, arguing that its agent and area general manager had cleared the man for check-in, after verifying his ID, but alleged that the man began shouting on the call and hung up before he could be checked in.
The company said it bore no liability for the property manager’s conduct since it only provides the booking platform, while operations remain with the hotel. The property manager, however, did not appear before the commission and was set ex parte.
Takeaway
The ruling underscores that service providers cannot demand additional charges after confirming a prepaid hotel booking. It reinforces that consumers are entitled to the services they have paid for, and booking platforms must ensure their partner properties honour confirmed reservations.
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For consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Kerala: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.
(Written by Avinash Verma, Avinash is an Intern with The Indian Express)