According to an OYO spokesman, FHRAI’s activities are harmful to small hotel owners. The travel firm submitted a letter to the MoT stating that the persistent squabble and their ongoing malafide friction with organised companies such as OYO prevent SMEs and entrepreneurs from expanding and moving forward.
It further requested the MoT to take appropriate action against the FHRAI’s unlawfully controlled Executive Committee and its members and stated that they are fighting for their personal interests rather than the interests of small hotel owners.
In a statement issued by the company, OYO also cited, “The National Company Law Tribunal’s (NCLT) Principal Bench in New Delhi recently issued an order directing the Ministry of Corporate Affairs (MCA) to examine the affairs of the FHRAI and ensure that it complies with the provisions of the Companies Act.
The order stated that this was a necessary course of action due to a series of lawsuits that are brewing as a result of FHRAI’s conduct. The Tribunal also stated that personal interest has loomed over the functioning of FHRAI, and this must be curtailed.”
It claims that FHRAI was founded with the intention of promoting the travel and tourism industry; however, recent allegations of unfair elections and mismanagement by the Hotel and Restaurant Association of Northern India (HRANI) and the Hotel and Restaurant Association of Western India (HRAWI), two regional chapters of FHRAI, have exposed the vested interests of former office bearers.
“Aggregators like OYO have enabled the industry in India over the last decade, and new age players have democratized travel, made hotels and homes more accessible to guests from around the globe. Today, an entrepreneur from Ziro, Arunachal Pradesh, has the same opportunities as one in Mumbai or Delhi,” said a representative of OYO.
The person accused the present governing body members of the FHRAI for creating hurdles and bottlenecks for new players in the market.
Tags: Federation of Hotel and Restaurant Associations of India (FHRAI), Oyo
