Several media reports on Tuesday said that OYO rooms filed for bankruptcy under IBC 2016 and the National Company Law Tribunal (NCLT) in Ahmedabad has initiated an insolvency resolution process against OYO Hotels and Homes Private Limited (OHHPL). OYO rooms are an Indian hospitality chain of leased and franchised living spaces. 

Soon after the bankruptcy news started doing rounds on social media, the founder and CEO of the OYO rooms, Ritesh Agarwal in a series of tweets on Wednesday clarified that the claims are “untrue and inaccurate.”

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He said that a claimant is seeking Rs 16 lakhs from OYO’s subsidiary that has led to a petition at the NCLT. 

“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,” Ritesh Agarwal said. 

In the second tweet, the OYO rooms CEO 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.”

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The NCLT ordered for the insolvency proceedings against OYO Rooms to start with effect on April 1. Rakesh Yadav is the applicant for the filing, as per the information on the  Insolvency and Bankruptcy Board of India website.