Delhi HC has issued a stay order against backpacker hostel startup Zostel on a complaint from the hotel rooms aggregator Oyo Rooms on allegations of theft of its copyright material.
The HC in its stay order banned Zostel from continuing with its budget hotel aggregation segment ‘Zo Rooms’ from using ‘confidential information and software’ of Oyo Rooms.
Recently, Zostel launched its budget hotel aggregation business ‘Zo Rooms’, which the rival competitor Oyo Rooms alleges is based upon copied data. Oyo Rooms produced evidences in the court such as emails, CCTV footage and theft of its ‘software’ by few of its former employees who joined Zostel.
Whereas, Zostel denied any of the claims made by Oyo Rooms.
“No illegality has been committed by us. We are in possession of the material that would demonstrate how a false and fabricated story has been created by OYO only out of business rivalry, just to kill any competition,” said Paavan Nanda, Co-Founder, Zostel Hospitality Private Limited.