Electric two-wheeler manufacturer Ola Electric announced on Tuesday that it has settled all outstanding dues between its wholly owned subsidiary and creditor Rosmerta Group. In a stock exchange filing, the company confirmed that Rosmerta has withdrawn the insolvency petition previously filed against Ola Electric Technologies.
Rosmerta had submitted the plea on March 15 before the Bengaluru bench of the National Company Law Tribunal (NCLT), citing payment defaults. The claims pertained to unpaid dues for services rendered and sought to initiate a corporate insolvency resolution process (CIRP) against Ola Electric Technologies.
“There are no further claims or disputes pending between the parties in this matter. The company remains committed to maintaining strong business relationships and ensuring the timely resolution of any commercial issues,” Ola Electric stated in its filing.
Rosmerta, a vendor managing vehicle registrations for Ola Electric on the government-run Vahan portal, was among the firms affected by the company’s contract renegotiations. Ola Electric stated that these renegotiations, including those with Rosmerta and Shimnit India, led to a drop in registrations on Vahan in February.
That month, only 8,652 Ola Electric vehicles were registered on Vahan, while the company reported sales of 25,000 in regulatory filings, creating discrepancies that drew inquiries from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
Ola Electric attributed the mismatch to a “temporary backlog” due to vendor negotiations, adding that registrations were being cleared, with daily figures now surpassing 50% of its average daily sales over the past three months.
Ola Electric revealed that it received trade certificate notices in four states. Meanwhile, competition has intensified with rivals like Bajaj Auto, TVS Motor, and Ather Energy, which is preparing for an IPO.
Earlier this month, the company projected its automotive division would turn EBITDA positive in the April-June quarter, aided by cost-cutting measures expected to save Rs 90 crore per month. However, in the October-December quarter, Ola Electric’s net loss widened by 50% year-on-year to Rs 564 crore, while operating revenue declined by 19%. Since its market debut in August 2024, the company’s stock has dropped nearly 65% from its peak.
