MakeMyTrip Ltd (NASDAQ:MMYT) shares faced downward pressure on Monday following a report from Morpheus Research, an activist short-selling firm.
Morpheus Research, reportedly composed of several Hindenburg Research alumni, earned a public endorsement from Hindenburg founder Nathan Anderson, who called them a “great team” he has “known for a long time.”
The report alleged India’s largest online travel agency (OTA) was “openly” defying regulators, utilizing accounting “gimmicks” and failed to protect customers from “bad actor” hotels.
Allegations of Regulatory Violations
Morpheus Research claimed MakeMyTrip continued to enforce “price parity” clauses despite a 2022 order from the Competition Commission of India (CCI) to halt the practice. The report cited interviews with 103 industry experts and former employees.
“It is still there [price parity] … They got away with it,” stated a leader from the Federation of Hotel & Restaurant …
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