No Oyo Is Not Going Bankrupt! Founder Ritesh Agarwal Explains Confusion Surrounding NCLT Order

Oyo Rooms, also known as Oyo Hotels & Homes, is an Indian hospitality chain of leased and franchised hotels, homes and living spaces.

(File Photo/ Getty)

New Delhi: In an unprecedented development, several website have recently reported that Oyo Rooms has filed for bankruptcy under the Insolvency and Bankruptcy Code, 2016 and the National Company Law Tribunal (NCLT) has ordered a corporate insolvency resolution process of the startup. 

However, company's founder and Chief Executive Officer (CEO) Ritesh Agarwal on Wednesday rejected the claims that his firm has filed for bankruptcy and terms the news as 'fake'. 

"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," Agarwal took to Twitter and wrote.

"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 explained further. 

The claims that Ahmedabad-bench of NCTL has ordered the insolvency application against OYO subsidiary, OYO Hotels & Homes Private Ltd (OHHPL) stand to be true.

The NCLT ordered the commencement of a corporate insolvency resolution process of the OYO subsidiary on March 30, 2021, with effect from April 1, 2021.

The tribunal has directed OYO Hotels and Homes to submit its claims with proof on or before April 15 to the interim resolution professional.