Oyo Rooms — Cheated with full amount as cancellation

Address:	New Delhi, Delhi, 110075
Website:	www.oyorooms.com

Badly cheated with full amount as the cancellation charge
Booking ids - wofk6513, zrfn8375

Oyo rooms being service provider/mediator between customers and hoteliers badly cheated us with their services.
We made the bookings on 22-apr-2016 for two rooms of rs. 2099 each for a hotel in rishikesh and both the bookings got cancelled by me on 23-apr2016 (Check-in date was 23-apr-2016) and called oyo for the refund due to cancellation and got the reply from oyo rooms representative saying that "sir we can't refund it back as per our policy" then i asked them to keep the bookings as it is then i got the reply "sir we can't refund your amount abd deduct 100 percent of the amount (Rs. 4198) as the cancellation charge.

Concern:
How can a service provider keep the full amount with them, when the amount is not being paid to the hotelier by oyo rooms, its clearly unethical practice a service provider is following even if its mentioned in the policies (Could be amended and reviewed from time to time, if required). Oyo could give us the credit of rs 4198 so that it can be used in the next booking, if not then refund the full amount or minimal cancellation charges.

As a courtesy, i called the hotelier to confirm if both the rooms have been booked then, got the confirmation that "yes, the hotel is fully booked" so, in this case hotelier is in profit by taking the new bookings and oyo is enjoying with the full amount (He has not credit anything in the hoteliers account). One person is in loss is me (Customer) with full amount (Rs. 4198). Should have been the case when the hotelier is credited with the booking amount (Even after cancellation) then, i wouldn't mind but, oyo just being the service provider is enjoying all the benefits.

Oyo should refund the amount in my case when i have called them proactively within 5-10 minutes to keep the bookings as it is if refund is not possible irrespective of the polices.

Should have been the case if i have booked directly with the hotelier and would get the bookings as it is after notifying them after the cancellation.