Delhi HC Quashes 20% Pre Deposit Condition On OYO Parent Tax Demand

The Delhi High Court set aside an order that required Oravel Stays Limited, the parent company of OYO, to deposit 20 per cent of an outstanding tax demand as a condition for the grant of a stay during the pendency of its appeal. The Court held that the condition ignored a prior ruling of the Income Tax Appellate Tribunal (ITAT) in the company’s favour.

A division bench of Justice Dinesh Mehta and Justice Vinod Kumar delivered the ruling on March 9, 2026 while deciding a writ petition filed by Oravel Stays Limited. The petition challenged an order dated February 9, 2026 passed by the Commissioner of Income Tax (TDS-2), Delhi. The order disposed of the company’s stay application by directing payment of 20 percent of the total demand while keeping the remaining demand stayed.