OYO, a travel technology company, has requested the Ministry of Tourism (MoT), to investigate the running of the Federation of Hotel and Restaurant Associations of India (FHRAI) and order the eviction of erring executive committee members.
FHRAI’s actions are detrimental to small hotel owners, according to an OYO spokesperson. The travel company wrote a letter to the MoT pointing out that constant tussle and their continued malafide friction with organized players like OYO, discourage SMEs and entrepreneurs from progressing and moving ahead with times and technology.
Furthermore, it also urged the MoT to take the necessary action against FHRAI’s illegally-run Executive Committee and its members, who are working for their own interests rather than the interests of the 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 alleges that FHRAI was formed with the intent to promote the travel and tourism industry; however, the recent allegations of unfair elections and mismanagement by the Hotel and Restaurant Association of Northern India (HRANI) and the Hotels and Restaurant Association of Western India (HRAWI), two regional chapters of FHRAI, have highlighted 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.