OYO Says Terminated Contract With Noida Hotel After Sex Racket Busted

Hospitality technology company OYO on Tuesday said it has terminated its contract with Sheetla Hotel in Noida following allegations that the premise was used for flesh trade.

OYO said it is also planning to pursue legal actions against the hotel and individuals involved to ensure accountability.

The police in collaboration with the anti-human trafficking unit had carried out a raid on the hotel at Behlolpur in Noida earlier this month and arrested several people for their involvement in running a flesh trade racket from the hotel, OYO said in a statement.

According to a statement from Noida Police, a raid was carried out at Sheetla Hotel on April 10 and seven people were arrested for their involvement in flesh trade.

The police also rescued four women and three minors from the hotel during the raid.

"The allegations prompted OYO to conduct a thorough investigation into the matter. After careful review and consideration, OYO found out that the hotel was already inconsistent in its business with OYO before the allegations came to light," the company said.

"However, OYO has decided to terminate its contract with the hotel. This decision aligns with OYO's ongoing programme to promote safe and secure hospitality," it said.

OYO also appreciated those who brought the allegations to light and encouraged anyone with information regarding similar incidents to come forward.

"OYO has a zero-tolerance policy towards illegal or immoral activities on its hotel premises. We are already working in close partnership with Noida police to ensure safe and secure hospitality in the city," OYO's north India head Pawas Kumar said.

"We are implementing enhanced monitoring and auditing procedures to prevent such incidents in the future. We remain committed to working closely with law enforcement agencies and local communities to create a safe environment for our guests," he added.

In November 2023, the company had launched a national programme to promote safe and secure hospitality in partnership with law enforcement agencies.

As part of the initiative, it has conducted joint seminars with police in several cities such as Noida, Lucknow, Chandigarh, Kolkata, Meerut and Bangalore, which brought together key stakeholders from the hospitality industry, law enforcement agencies, and OYO's hotel partners.

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