OYO battles to protect founder’s image, brand identity amid FIR row

In a high-stakes move to safeguard its brand and public image, hospitality major OYO Hotels & Homes has approached the Delhi High Court seeking relief from what it calls “unfair and defamatory” media coverage concerning a First Information Report (FIR) filed in Rajasthan, Brand and Bench reported.

As per the media report, the company alleges that several media portals have published stories that paint a one-sided and damaging narrative, without seeking its version of events.

Justice Amit Bansal, while hearing the plea, issued notice to the news outlets named in the suit and granted OYO permission to share its side of the story along with a copy of the Rajasthan High Court’s stay order on any coercive action related to the FIR. The Court noted that upon receiving this information, news publications “shall duly publish the same.”

This legal move underscores OYO’s aggressive stance in protecting its brand integrity in the face of mounting scrutiny. The FIR in question, filed by Samskara Resort in Jaipur, accuses OYO and its founder, Ritesh Agarwal, of inflating revenue figures through allegedly fake bookings totaling Rs 22.5 crore, resulting in a Goods and Services Tax (GST) notice.

OYO has categorically denied the allegations, calling them false and malicious.

At the heart of OYO’s court plea is the reputational risk associated with stories that circulate without the company's input. The petition emphasized the potential damage to OYO’s trademark, brand perception and the reputation of its founder.

The company has taken issue not just with the substance of the articles but also with the unauthorized use of its brand elements, including its trademark and the image of CEO Ritesh Agarwal, in coverage it claims is defamatory and misleading. As the Court refrained from granting an immediate restraining order on publication, it did provide an avenue for the company to present a counter-narrative, an essential right for a brand whose public trust and digital presence are core to its business model.

OYO’s larger concern lies in the long-term impact on consumer perception and its network of partner hotels. In a fiercely competitive hospitality market, where brand reputation is as critical as pricing, unchecked narratives can erode customer loyalty and deter future partnerships.

With over a decade of innovation-driven growth, OYO has long positioned itself as a disruptor in the hotel aggregation space. But as the company now finds itself in the crosshairs of legal and media scrutiny, its response reflects a growing need for brands to proactively control their narrative in the court of public opinion, not just the courtroom.