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Fact check: Oyo did not apply for bankruptcy, clarifies CEO | Companies News


New Delhi: Several news reports on Tuesday said that Hospitality firm OYO has applied for bankruptcy under IBC 2016.

However, the company’s CEO Ritesh Agarwal denied claims via a series of tweets and said that OYO has not filed for bankruptcy. THe NCLT order pertains to the Ahmedabad entity and not exactly for Oravel Stays Pvt Ltd.

“There is a PDF and text message circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and inaccurate. A claimant is seeking INR 16Lakhs (USD 22k) from OYO’s subsidiary leading to a petition at NCLT,” said company’s CEO Ritesh Agarwal.

“OYO has paid that under protest and amount already banked by the claimant. OYO has also appealed with the NCLAT about the matter. OYO is recovering from the pandemic steadily and our largest markets are operating profitably,” he added.

Agarwal has also pasted a document on twitter, stating that the company has challenged NCLT order against its subsidiary. Read the full text below.

OYO has challenged NCLT Order against its subsidiary for an amount of 16 Lakhs

OYO has a subsidiary called OHHPL
The NCLT admitted an order against its subsidiary for an amount of 16 Lakhs OYO has challenged the order in NCLAT
This has earlier happened in Flipkart and set aside said sources familiar to the matter

OYO has challenged NCLT Order against its subsidiary for an amount of 16 Lakhs. The
Subs idiary name is OHHPL. This is not the first time that a petition has been accepted by NCLT for a new age company. In Feb 2020 Flipkart also received such a petition and it was set aside.

Statement on behalf of OYO spokesperson, “We are surprised to hear that the Hon’ble NCLT has admitted a petition against OHHPL a subsidiary of OYO for INR 16 Lakhs in a contractual dispute, which dispute is not even with this subsidiary. We have filed an appeal. The matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage. We have strong faith and belief in our judicial system.”

The company also said, the INR 16 L in dispute has already been paid to the claimant under protest by the entity (other than OHHPL) with whom the dispute was raised.

Flipkart had a similar matter in February 2020 where a court for a small operational creditor had allowed NCLT petition but it was promptly set aside by NCLAT.”

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Read More: Fact check: Oyo did not apply for bankruptcy, clarifies CEO | Companies News

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