In a ruling that underscores the consequences of deficient service in the hospitality sector, the District Consumer Disputes Redressal Commission in Thoothukudi has mandated a hefty compensation of over ₹16 lakh against OYO and a Chennai-based guest house for their failure to honor a confirmed online booking. The complaint arose after a man and his sister were left without accommodation, critically disrupting the sister’s preparation for a crucial law entrance exam.
Background of the Complaint
In 2022, a resident of Thoothukudi had pre-booked a room in Chennai through OYO, anticipating his sister’s participation in the All India Law Entrance Test—a prerequisite for admission to prestigious National Law Universities (NLU) across India. Despite the advance booking, the initial hotel rejected the online reservation, and an alternative arrangement by OYO also failed to provide them a room. The siblings were forced to seek last-minute accommodations at another guest house, which not only presented several issues but also charged them extra.
Impact on Academic Pursuit
The complainant argued that the disruptions and additional stress contributed significantly to his sister’s poor performance in the examination. Consequently, she was compelled to retake a year of preparation to attempt the entrance test again, thereby delaying her educational and career aspirations to join an NLU.
Details of the Court’s Order
On July 25, Consumer Commission President A Thiruneela Prasad, alongside members N Namachivayam and A Sankar, delivered a judgment acknowledging the severe impact of the service failures on the complainant’s sister’s academic goals. The court ordered OYO founder Ritesh Agarwal and the implicated guest house to jointly compensate for various damages:
– ₹6,797 for the original booking and travel expenses,
– ₹1.23 lakh for the subsequent year’s preparatory course fees,
– ₹10 lakh for the loss of academic opportunity and the resultant psychological distress,
– ₹5 lakh for the mental anguish inflicted upon the siblings,
– ₹10,000 as litigation costs.
The decision, handed down ex-parte due to the absence of representatives from OYO and the guest house, highlighted the significant mental suffering and dashed educational hopes caused by the “deficiency in service and unfair trade practices.”
