Hospitality unicorn Oyo asks Centre to look into running of hotel & restaurant body's 'illegally run' unit

Hospitality unicorn Oyo has requested the Union Tourism Ministry to look into the running of the Federation of Hotel & Restaurant Associations of India (FHRAI) amid allegations that FHRAI’s actions are 'detrimental' towards small hotel owners. It has also requested eviction orders for erring executive committee members.
In a letter issued on Sunday, the hospitality company said that there is a  constant tussle and FHRAI continued 'malafide' friction with organised players like Oyo discourages SMEs and entrepreneurs from progressing and moving ahead with times and technology. 
It has urged the tourism ministry to take 'necessary action' against FHRAI’s 'illegally run' executive committee and its members who are working for self-interest rather than the interest of the small hotel owners. 
Last month, Oyo had written to the National Company Law Tribunal highlighting the problem and asked the tribunal to expedite the Ministry of Corporate Affairs (MCA) investigation on the running of FHRAI. 
Recently, the NCLT's Principal Bench in New Delhi issued an order directing the MCA to examine the affairs of the FHRAI and ensure that it complies with the provisions of the Companies Act.
It said that this was the necessary course of action due to a “series of litigation that is breeding due to conduct in the affairs of FHRAI”. The Hon’ble Tribunal also pointed out that “personal interest has come to loom over the functioning of FHRAI and this has to be curbed”.
“FHRAI was formed with the intent to promote the travel and tourism industry, however, the recent allegations of unfair elections and mismanagement by Hotel & Restaurant Association of Northern India (HRANI) and Hotels and Restaurants Association of Western India (HRAWI), two regional chapters of FHRAI has highlighted vested interests of former office bearers,” the NCLT observed.
Oyo, in its letter to the Tourism ministry, said the object of the FHRAI is to promote the interest of hotels of various regions by encouraging and protecting the hospitality industry in India has been defeated due to petty squabbles time and again. Personal interest has come to loom over the functioning of FHRAI. Certain members of various regions of FHRAI are breeding litigation for personal reasons and we strongly disapprove of it. “What encourages the parties to seek more terms of appointment, the position they seek to hold, and for the objective is troubling this Tribunal. If there is no personal interest of members then the Federation should run smoothly. This is not happening as we see from facts as narrated earlier,” Oyo said.
"Aggregators like Oyo have only 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. They have fuelled the tourism economy in India’s heartland creating alternative sources of income for many," the Oyo’s letter further stated.
"Today an entrepreneur from Ziro Arunachal Pradesh has the same opportunities as one in Mumbai or Delhi. But the present governing body members of the FHRAI, are running a deleterious and malicious agenda aimed towards ruining the interest of the hotel industry at large, and creating hurdles and bottlenecks for new players in the market, who are posing a stiff challenge to the self-serving agenda of certain membeHospitality unicorn Oyo asks Centre to look into running of hotel & restaurant body's 'illegally run' units of the FHRAI with a vested interest," the Oyo representation added.