The Federation of Hotel and Restaurant Associations of India (FHRAI) on Wednesday urged the Securities and Exchange Board of India (SEBI) to call off online hospitality major Oyo's initial public offering (IPO), citing the massive losses suffered by the hotel rooms aggregator in recent years.
In a representation to Sitharaman, the FHRAI has sought her intervention to set in motion the Rs 60,000 crore sanctioned under the 'Loan Guarantee Scheme' for Covid-hit sectors, as announced by her on June 28, said FHRAI Vice President Gurbaxish Singh Kohli.
The letter to the Ministry states that the hotel industry in the country is going through a very challenging phase.
The room aggregator said that the apex body of the Indian hospitality industry appears to have been misled by claims of certain bodies.
In a letter dated 10 December, FHRAI has pointed out to OYO that it is endorsing illegal and unlicensed Bed & Breakfast apartments, flats in residential and commercial buildings, rooms in chawls and such other independent structures as Hotels.
Hotels have alleged that the OTAs charge commission that range anywhere between 18 and 40 per cent.
The Federation of Hotel and Restaurant Associations of India (FHRAI) has appointed Garish Oberoi as its president for 2017-18, the…
