OYO says an angry creditor has dragged the $9 billion startup to court over a ₹16 lakh dispute

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OYO says an angry creditor has dragged the $9 billion startup to court over a ₹16 lakh dispute
OYO
  • The National Company Law Tribunal has admitted a petition against OYO’s subsidiary from a Gurugram-based creditor.
  • OYO said that it has challenged the NCLT order against its subsidiary. Ritesh Agarwal’s company says it’s ‘contractual dispute’ amounting to ₹16 lakh.
  • Check out the latest news and updates on Business Insider.
Ritesh Agarwal-led OYO has not filed for bankruptcy. A Gurugram-based creditor has initiated insolvency proceedings against the $9 billion company and The National Company Law Tribunal has admitted the petition against OYO’s subsidiary Oyo Hotels and Homes Pvt Ltd.

According to reports, Gurugram-based Rakesh Yadav has filed the plea in NCLT’s Ahmedabad chapter over non payment of dues.

However, OYO said that it has challenged the NCLT order against its subsidiary. In a statement, OYO said that the matter is a ‘contractual dispute’ for an amount of ₹16 lakh.

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“We are surprised to hear that the Hon’ble NCLT has admitted a petition against OHHPL a subsidiary of OYO for ₹16 lakh in a contractual dispute, which dispute is not even with this subsidiary. 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,” said an OYO spokesperson.

OYO also said that the claimant has already been paid the said amount. However, OYO now has to submit the proof by April 15, 2021.

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