FACT CHECK: OYO files for bankruptcy? Here's the truth

In a surprising development, it was reported by several websites on Tuesday (Aril 6) that OYO has filed for bankruptcy under IBC 2016 and the NCLT has ordered the beginning of a corporate insolvency resolution process of OYO Hotels and Homes Private Limited.

Oyo founder and CEO Ritesh Agarwal has rejected the reports that Oyo has filed for bankruptcy and termed 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," he said in a series of tweets.

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. 1/3

— Ritesh Agarwal (@riteshagar) April 7, 2021

"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.

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. 2/3

— Ritesh Agarwal (@riteshagar) April 7, 2021

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