I had booked via makemytrip.com about five months prior to my 3 night stay during the annual Hornbill Festival. Few days before arrival I rang to confirm my booking and was advised that it had been declined.
Makemytrip.com, one of India's most reputable travel sites, still had it on record as "Confirmed" as the hotel hadn't followed the proper process declining it.
They left me without any pre-booked accommodation. I ended up in a very basic homestay at a higher price.
Basically, they chose to not honour my booking so they could resell the room and 3-4x the rate during the festival.