In its letter to SEBI, FHRAI also accused OYO’s parent company Orawell Stages Ltd of anti-competitive business practices. “Orwell has been involved in unfair, anti-competitive and fraudulent deals and business practices, including entering into anti-competitive agreements as well as abusing its dominant position,” it said. ET has reviewed a copy of the same.
The letter said that FHRAI had already shared such information with the Competition Commission of India (CCI), which, after a preliminary hearing, found a prima facie case to probe Oyo for alleged violations of the Competition Act, 2002 and ordered his investigation branch. Directed the General to initiate investigation on October 28, 2019. “There is no bar on this [probe] count. The investigation is pending and it is known to be at an advanced stage,” FHRAI said.
It said, “The DRHP filed by Orawell fails to disclose that there is no bar to the prima facie findings of the CCI that Orawell has violated the provisions of the Competition Act nor the initiation by the Director General in this regard.” There is no stay on the investigation. For the same.”
Growth comes weeks later
Zostel (Zo Rooms) has launched Sebi . asked the For rejecting Oyo’s draft red herring prospectus (DRHP) and suspending its proposed IPO. Oyo had agreed to acquire a smaller rival, Zostel, in 2015. But after the deal failed stayed Said it still deserves about 7% in the Oravel Stages.
In its letter to SEBI, Zostel said that OYO’s IPO is “non-maintainable as the capital structure of Orawell is not final”. Accordingly, filing of DRHP of Orawell is illegal under the circumstances, it said. “DRHP is replete with material omissions and blatant misstatements intended to mislead the public without appreciating the risk involved in investing in Orawell shares,” Zostel said.