BENGALURU: In a fresh twist in the insolvency proceedings against a unit of hospitality unicorn Oyo, the Federation of Hotels and Restaurants Associations of India (FHRAI) has informed the National Company Law Appellate Tribunal (NCLAT) that Oyo has assets worth Rs 300 crore and is no longer a start-up.
FHRAI’s lawyers were referring to an observation made by NCLAT judge Justice Anant Bijay Singh that there needs to be a separate provision under the Insolvency and Bankruptcy Code for startups such as Oyo which have no assets. The NCLAT has concluded its hearing of the matter and is expected to deliver its judgement soon.
The FHRAI had sought permission for its submissions to be heard, claiming that Oyo owes its hotelier members Rs 225 crore for violation of various agreements. Its legal counsel Krishnedu Dutta informed the tribunal that according to data from research firm Tofler, Oyo’s parent firm Oravel Stays reported consolidated operating revenues worth Rs 6,430 crore for FY19 and assets over Rs 1,000 crore. Oyo has questioned FHRAI’s intervention, stating that it has not entered into any agreement with the association.