OYO’s Gurugram office raided by I-T Dept

Team Udayavani, Jan 12, 2020, 9:52 AM IST

Bengaluru: Oyo Hotels and Homes had released a statement on Friday confirming that Income Tax officials had conducted a surprise search of one of its four offices at Gurugram.

“There is a routine TDS survey in progress in one of our offices. We are cooperating with the authorities, and are committed to engaging with all relevant stakeholders,” an Oyo spokesperson said.

It is not clear what was the reason behind the search and Oyo did not give further details.

Oyo’s major shareholder SoftBank is under immense pressure from investors after it had to bail out its badly performing investment WeWork with approximately $10 million.

This latest development adds to the company’s challenges as it is already facing backlash from hoteliers who are saying they have been suffering from its hidden fees.

An internal forecast of the company’s financials in November had shown that it won’t be profitable until 2021.