OYO files for bankruptcy?- Check full details here!

A notice in PDF format is also being circulated everywhere on the Social Media, which the company’s founder and CEO Ritesh Agarwal called untrue.

Oyo rooms, popularly recognized as Oyo Hotels & Homes, is an Indian hospitality chain of leased and franchised hotels, homes, and living spaces.

According to a report of YourStory, The National Company Law Tribunal (NCLT) has admitted a petition for the commencement of corporate insolvency proceedings against OYO Hotels and Homes Pvt Ltd (OHHPL), a subsidiary of Oyo Group, on March 30, 2021 over the plea filed by its creditor Rakesh Yadav.

Well, a notice in PDF format is also being circulated everywhere on the Social Media that quotes, “Notice is hereby given that the National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process of the OYO Hotels and Homes Private Limited on 30th March, 2021 w.e.f. 01 April, 2021).”

The notice further quotes, “The creditors of M/S. OYO Hotels and Homes Private Limited, are hereby called upon to submit their claims with proof on or before 15 April, 2021 to the interim resolution professional at the address mentioned against entry No. 10.”

Screenshot of PDF being circulated on Social Media
Screenshot of PDF being circulated on Social Media

But now, founder and CEO of Ritesh Agarwal has called this notice as ‘untrue’. In a series of tweets on his official Twitter handle, Agarwal said, “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.”

In an another tweet, Agarwal said, “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.”

Now all eyes are on a official information which will make it clear that which side is saying the truth.

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