Oyo did not apply for bankruptcy, clarifies CEO

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 Group said it has filed an appeal with the National Company Law Appellate Tribunal (NCLAT), challenging the NCLT order against its subsidiary, OHHPL, for an amount of Rs 16 lakh. The company also said the Rs. 16 lakh disputed amount has already been paid to the claimant under protest by the entity with whom the dispute was raised (other than OHHPL).

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