After long-running unconfirmed reports about OYO acquiring Zo Rooms, promoted by Zostel, OYO said late last year the non-binding term-sheet for such a deal had to be terminated as it did not see any business value in such a transaction.
Online hotel aggregator OYO Rooms accused hostel startup 'Zostel' of "blackmailing" for getting into a deal and said it has already filed data theft complaints.
While there were no comments from Zostel, an OYO spokesperson said, "Since more than one year, we've been continuously inconvenienced and harassed by Zostel and its directors. They've used every tactic, from sending letters carrying false allegations to OYO's management to writing to our shareholders, for intimidating and pressurising us to submit to their unreasonable demands."
After long-running unconfirmed reports about OYO acquiring Zo Rooms, promoted by Zostel, OYO said late last year the non-binding term-sheet for such a deal had to be terminated as it did not see any business value in such a transaction.
OYO said it had filed a criminal complaint against the founders of Zostel on January 16, 2018, under various sections pertaining to criminal breach of trust, cheating and misrepresentation of data.
"They are only trying to arm twist and blackmail OYO and its investors into getting their deal done without having a real business or even a binding agreement at hand and threatening us through legal routes," the spokesperson for OYO said.
The spokesperson claimed that the formal civil proceedings filed by Zostel against OYO actually comes as a relief as this will bring the complete matter in front of the honourable court and the company hopes that this will also put an end to all such maneuvers of Zostel.
