Speculations are rife 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.