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Hospitality major, OYO, in a recent letter, requested the National Company Law Tribunal (NCLT) to expedite the Ministry of Corporate Affairs’ (MCA) investigation on the running of the Federation of Hotel & Restaurant Associations of India (FHRAI) and make the same available to the public and the members of the hospitality industry.
Recently, the NCLT’s Principal Bench, New Delhi passed an order directing the MCA to look into the affairs of FHRAI and examine if it conducts itself in a manner compliant with the provisions of the Companies Act. T.
The representation by OYO points out that the “present governing body members of the FHRAI, are running a deleterious and malicious agenda aimed at ruining the interest of hotel industry, and creating hurdles and bottlenecks for new players in the market.”
Worrisome development
OYO said this is a worrisome development for the business environment of the country. “It does not augur well for the business environment of our country when prominent start-ups, being universally acclaimed for their drive and innovation are the subject of such concerted and intimidatory tactics launched by the present committee of FHRAI, across multiple forums with the sole malicious intent to harm the hotel industry of the country, whose interest such organisations espouse.”
OYO’s letter recounts the findings and order passed by the NCLT’s Principal Bench which observed that the objective of the FHRAI to promote the interest of hotels of various regions 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 the objective is troubling this Tribunal. If there is no personal interest of members then the Federation should run smoothly. This is not happening.
OYO also questioned the functioning of FHRAI and urged the NCLT to take appropriate action against the erring committee members.
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