One of OYO’s hospitality partners has dragged it to the National Company Law Tribunal (NCLT) for failure to pay it assured returns running into several months and failure to maintain the promise given in an agreement of paying Rs 13 lakh every month since May 2018.
The company, Conclave Infratech, based out of Hyderabad, owns a hotel The Conclave in Hyderabad and there 36 rooms in this property. Oravel Stays, the company that owns OYO, had entered into an agreement is 2018 in which it was promised by Oyo that The Conclave will receive assured minimum income of Rs 12,96,000 each month beginning May 2018.
Conclave has claimed in its petition at the NCLT that OYO paid the amount for only a couple of months and has not paid ever since. There is also the accusation that the corporate debtor (a terminology used in the IBC Code to denote the entity owing the debt) had unilaterally reduced this amount to Rs 9,96,000 in May 2019. The application by the Corporate creditor The Conclave, calls this move “fraudulent”.
The application seems to suggest that the amounts paid by OYO for several months were below this minimum assured amount of Rs 12.96 lakh. Observers say the hotel is capable of earning a revenue of Rs 15 lakh a month.
OYO has reacted to this development and said there are discussions going on between the two companies and the amounts claimed by The Conclave are being disputed by them. OYO says the petition filed at the NCLT Ahmedabad branch is not maintainable. It is yet to come up for hearing.
The total amount being claimed by The Conclave from Oyo is Rs 82.50 lakh.