OYO founder-CEO Ritesh Agarwal clears the air on bankruptcy rumours

The confusion stemmed from a case filed with NCLT, which is listed for hearing on Thursday. Agarwal took to Twitter to quash the rumours

Topics

Oyo | Bankruptcy | startups in India


Neha Alawadhi  | 
New Delhi 

Ritesh Agarwal, Oyo founder

Ritesh Agarwal, Oyo founder

OYO founder and CEO Ritesh Agarwal on Wednesday set to rest some news reports that the hotel aggregator had filed for bankruptcy.

The confusion stemmed from a case filed with the National Company Law Tribunal, which is listed for hearing on Thursday. Agarwal took to Twitter to quash the rumours.

“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 16 Lakhs (USD 22k) from OYO’s subsidiary leading to a petition at NCLT,” he tweeted.

In a follow on tweet he added: “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.”

Oravel Stays, the parent company of OYO Hotels and Homes Private Limited (OHHPL), has challenged an order of the NCLT to initiate insolvency proceedings against OHHPL.

An OYO spokesperson said,” 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.”

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First Published: Wed, April 07 2021. 13:44 IST