Rosmerta Digital Services Ltd, a vehicle registration service provider, has filed an insolvency petition against Ola Electric Mobility’s subsidiary Ola Electric Technologies before the National Company Law Tribunal in Bengaluru. According to Rosmerta, the company has defaulted in payments for the services provided. Due to this announcement Ola Electric’s share price dipped 4% on Monday’s trading session.Â
According to PTI, in a regulatory filing, the company said, “A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd.”
The petition has been submitted before the National Company Law Tribunal’s Bengaluru Bench, alleging default in payment towards the services rendered by the operational creditor and seeking initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd, it added.
What now for Ola Electric?
Ola Electric has said that it will seek appropriate legal advice and it strongly disputes the claims made. According to PTI, the Bengaluru-based EV two-wheeler company added that it will “take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter”.
Last month, a PTI report stated that Ola Electric had announced that it is renegotiating contracts with its vehicle registration agencies, Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd as part of a sales overhaul.
“We are renegotiating the terms of agreement with our agencies, namely Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd, to reduce cost and enhance registration process efficiencies. Due to ongoing negotiations and optimisation of the registration process, our registration numbers for the month of February 2025 (on the VAHAN portal) will be temporarily impacted. Our sales continue to be strong through February 2025 and the dip in registration will be streamlined in the next few weeks,” said the statement from Ola Electric.
