Oyo Office Target of Surprise Search by Tax Officials, as SoftBank Faces Investor Security


SoftBank-backed hotel chain Oyo Hotels and Homes said on Friday income tax authorities had carried out a surprise search at one of its four offices in 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 spokeswoman said.

It was not immediately clear what prompted the search and Oyo did not elaborate.

The director general of investigation at India’s Income tax department could not be immediately reached for comment.

The news comes at a time when Oyo’s major shareholder SoftBank faces renewed investor scrutiny after being forced to bail out one of its best known portfolio companies, the cash-burning, office-sharing firm WeWork, for about $10 billion last year.

SoftBank is, in fact, getting squeezed by a sell-off in many of its listed bets which has put a spotlight on founder Masayoshi Son’s strategy of pouring billions of dollars into unproven, money-losing startups.

The latest development adds to Oyo’s challenges as it faces backlash from some hotel owners in India who say they have been blindsided by hidden fees.

In November, internal projections showed Oyo’s India business will likely make losses until 2021.

© Thomson Reuters 2019

For the biggest CES 2020 stories and latest updates, visit our CES hub.

Related Stories

Products You May Like

Articles You May Like

Sprint 5G is no more, as T-Mobile focuses on its own network
PUBG Mobile Update 0.19.0 Coming on July 7 With New Livik Map
WhatsApp to Get Animated Stickers, QR Codes, Group Video Call Improvements, and More Over Coming Weeks
The iRig Pro Duo I/O makes managing advanced audio workflows simple anywhere
MediaTek Helio G35, Helio G25 Gaming Focused SoCs Launched for Budget Smartphones

Leave a Reply

Your email address will not be published. Required fields are marked *