NCLAT stays CCI-imposed penalty against OYO
The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the ₹169 crore penalty imposed by the CompetitionCommission of India (CCI) upon IPO-bound Oravel Stays Limited (OYO). A NCLAT Division Bench, comprising Justice Rakesh Kumar, Member (Judicial) and Ashok Kumar Mishra, Member (Technical), however, directed OYO to deposit 10 per cent of the penalty amount.
It maybe recalled that OYO had on November 15 filed an appeal before NCLAT against the CCI order of October 19 levying a penalty of ₹168.88 crore on the hospitality and travel tech firm for indulging in anti-competitive practices.
A separate penalty of ₹223.48 crore was also imposed on MakeMyTrip-Goibibo (MMT-Go). The CCI also directed MMT-Go to change its market behaviour and, in particular, modify its agreements with hotels so as to remove the price and room availability parity obligations imposed by it on its hotel partners with respect to other Online Travel Agencies.
OYO alongwith its appeal has also moved an application seeking an immediate interim stay on the order of CCI contending that if it is directed to pay the penalty, it would be forced to forego business returns that the same would generate when employed in its business. No loss will be caused in the event the levy of penalty is stayed by the Tribunal till the disposal of appeal, argued OYO.
