'Absolutely untrue': Founder Ritesh Agarwal denies reports of Oyo filing for bankruptcy

NEW DELHI: Oyo founder Ritesh Agarwal on Wednesday denied reports of the company filing for bankruptcy.
In a tweet, Agarwal said: "There is a PDF and text message circulating that claims Oyo has filed for bankruptcy. This is absolutely untrue and inaccurate."

He further clarified that an operational creditor is seeking Rs 16 lakh from Oyo's subsidiary, Oyo Hotels & Homes Private Limited (OHHPL) over non-payment of dues and the National Company Law Tribunal (NCLT) has admitted his plea for corporate insolvency against it.
Oyo has challenged the NCLT order moved against its subsidiary in the National Company Law Appellate Tribunal (NCLAT).
Ritesh also informed that the Rs 16 lakh under dispute has already been paid to the claimant under protest by the entity (other than OHHPL) with whom the dispute was raised.
"We are surprised to hear that the Hon'ble NCLT has admitted a petition against OHHPL, a subsidiary of Oyo, for Rs 16 lakh in a contractual dispute, which dispute is not even with this subsidiary," the company said in an official statement.
"We have filed an appeal. the matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage. We have strong faith and belief in our judicial system," the statement added.
E-commerce platform Flipkart had also faced a similar matter in February last year where a court for a small operational creditor had allowed the NCLT petition, but it was promptly set aside by the NCLAT, Oyo said.