Fact Check: Is Odisha Entrepreneur Ritesh Aggarwal’s OYO Heading For Bankruptcy?

Bhubaneswar: Following reports by several websites on Tuesday that OYO has filed for bankruptcy under IBC 2016, Oyo founder and CEO Ritesh Agarwal has rejected the reports that Oyo has filed for bankruptcy and termed the news as fake. The reports had said that National Company Law Tribunal (NCLT) has ordered the beginning of a corporate insolvency resolution process of OYO Hotels and Homes Private Limited.

“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,” he said in a series of tweets.

“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,” Agarwal added.

Earlier, it was reported that that the corporate insolvency resolution process of Oyo Hotels and Homes was issued by the Ahmedabad branch of NCLT on March 30.