According to reports, Anurag Yadav booked the stay through Maker Baha Travel Agency on August 12.
He arrived at the five-star property with his wife and two children and stayed from August 14 to 23.
During their stay, the family reportedly used several hotel services, including lunch and dinner, adding to the final bill.
'Travel agency will pay', guest allegedly claims
At checkout, the hotel reportedly presented Yadav with a bill of Rs 5.74 lakh.
However, he allegedly refused to settle the amount, claiming that the travel agency through which he had booked the hotel would make the payment.
The travel agency, however, reportedly denied having any such arrangement with Yadav when the booking was made.
Hotel files police complaint
Following the alleged payment dispute, Ravindra Singh, the hotel's liaison manager, approached Ambamata police station and filed a complaint.
Sub-Inspector Ajayraj Singh said the case prima facie appeared to involve alleged fraud by the tourist in possible collusion with the travel agency. Police are currently investigating the matter.
Another luxury hotel fraud case
The Udaipur case comes shortly after another alleged fraud targeting luxury hotels surfaced in July.
A 69-year-old man from Tamil Nadu, Bingson John, was arrested for allegedly defrauding more than 300 luxury hotels across India over nearly three decades.
Police alleged that John used fake identities and posed as a foreign tourist guide, English teacher, or yoga trainer to check into five-star properties.
He would reportedly stay for several days, use hotel facilities and then allegedly leave without settling his bills.
Police also accused him of occasionally taking valuable hotel property with him.
The latest case has once again raised concerns over how luxury hotels can be targeted through alleged payment fraud.