(Yicai Global) Dec. 21 -- A Beijing court has slapped consumption restrictions on Dai Wei, founder and chief executive of beleaguered bike-sharing company Ofo -- already in hot water over deposit refunds -- because of other disputes.
Dai is barred from taking flights, leisure travel and other forms of costly consumption, per the court order.
Haidian District Court in the city's high-tech Zhongguancun area handed down these restraints on Ofo's owner Beijing-based Dongxia Datong (Beijing) Management and Consulting for failure to fulfill its payment obligation to Hangzhou Huodi Logistics, a unit of Zhejiang province-based Transfar Logistics Group, within the deadline set in a notice of execution, per documents posted on the website of China's highest court.
Dai and Dongxia Datong must file a request with the judges if business necessity compels them to engage in the above prohibited consumer acts. Any verified violation of the sanctions will be dealt with by fines and administrative detention.
Serious infractions that rise to the level of a crime shall be dealt with accordingly, per the court documents.
Consumption restriction -- or high consumption restriction -- seeks to rein in asset losses stemming from property acquisitions, rentals of high grade office buildings and other like activities by the discredited person subject to enforcement, and it is thus conducive to executing a court judgment.
Ofo is battling several lawsuits from suppliers, logistic companies and others, public data shows. Tens of millions of users have also recently demanded refunds from the company.
The total refund amount for Ofo, if calculated based on the per capita deposit of CNY99 (USD14.37) to CNY199, is as high as CNY1.1 billion (USD160 million) to CNY2 billion yuan.
Dai will made good on every penny Ofo owes, he said in an open letter this week, but without stating a specific timetable for repayments.
Editor: Ben Armour