MUMBAI/BENGALURU: Oyo has challenged an order from the National Company Law Tribunal (NCLT), which admitted a plea for corporate insolvency proceedings against the company’s subsidiary Oyo Hotels & Homes, which houses the India business.
Oyo founder & CEO Ritesh Agarwal took to Twitter to describe the charges as “untrue and inaccurate”. The matter is expected to be heard in the appellate tribunal on Thursday.
Sources aware of the matter said the order’s origin goes back to a disputed amount of Rs 16 lakh between Oyo and a hotel owner, Rakesh Yadav, with regard to the ‘minimum guarantee’ that Oyo provides to owners.
Why The NCLT Admitted An Insolvency Plea Against OYO Hotels
Apr 07 2021, 9:31 PM
April 07 2021, 9:31 PM
April 07 2021, 9:31 PM
A dispute over a Rs 16 lakh payment between Oyo Hotels & Homes Pvt. and a Gurgaon-based hotel owner has led to the initiation of insolvency proceedings against the Oyo subsidiary. The company runs hotel rooms and vacations home rentals across 80 countries.The National Company Law Tribunal, Ahmedabad, found that the petition by Rakesh Yadav, owner of Yellow White Residency hotel, fulfilled the conditions under the Insolvency and Bankr.
A dispute over a Rs 16 lakh payment between Oyo Hotels & Homes Pvt. and a Gurgaon-based hotel owner has led to the initiation of insolvency proceedings against the Oyo subsidiary. The company runs hotel rooms and vacations home rentals across 80 countries.
MUMBAI/BENGALURU: Oyo has challenged an order from the National Company Law Tribunal (NCLT), which admitted a plea for corporate insolvency proceedings against the company’s subsidiary Oyo Hotels & Homes, which houses the India business.
Oyo founder & CEO Ritesh Agarwal took to Twitter to describe the charges as “untrue and inaccurate”. The matter is expected to be heard in the appellate tribunal on Thursday.
Sources aware of the matter said the order’s origin goes back to a disputed amount of Rs 16 lakh between Oyo and a hotel owner, Rakesh Yadav, with regard to the ‘minimum guarantee’ that Oyo provides to owners. Oyo used to offer a minimum amount per month to property owners regardless of the business the property did. Agarwal said Oyo has already paid this money to Yadav, a hotelier who runs his facility in Sector 17C Gurugram, “under protest” and that the amount has been banked by the claimant.
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