Rosmerta Seeks To Initiate Insolvency Proceedings Against Ola Electric Unit
Ola Electric has severed ties with vendor Rosmerta Digital Services, which conducted its vehicle registration process. The company is handling the function inhouse.
A vendor of Ola Electric Mobility Ltd. has sought the initiation of insolvency proceedings against a wholly owned subsidiary of the electric two-wheeler maker over non-payment of dues.
Rosmerta Digital Services Pvt. Ltd., an operational creditor of Ola Electric Technologies Pvt. Ltd., has filed a petition at the National Company Law Tribunal in Bengaluru alleging default in payments towards the services rendered, according to an exchange filing on Saturday. The petition seeks initiation of the corporate insolvency resolution process.
“The company has sought appropriate legal advice and it strongly disputes the claims made,” Ola Electric said in the filing. “The company will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter.”
Ola Electric Technologies is the automotive subsidiary of Ola Electric that makes scooters at the company's Futurefactory in Tamil Nadu. Ola Cell Technologies Pvt. Ltd. handles the battery business at the Gigafactory.
Rosmerta Digital Services was one the vendors that handled vehicle registrations for Ola Electric on the government’s VAHAN website.
In February, the billionaire Bhavish Aggarwal-led firm severed ties with the vendor and set up an in-house team to handle the process, NDTV Profit reported on 6 March. That was aimed at saving costs and turning operationally profitable as soon as possible. However, Ola Electric is yet to settle its dues of Rs 17-18 crore with Rosmerta Digital Services.
The move to process vehicle registrations in-house assumes significance since Ola could register only a third of the scooters it sold in February.
The Bengaluru-based EV company claimed to have sold 25,000 electric scooters last month but only 8,390 of those were shown as registered on the government’s VAHAN website.
The discrepancy is due to renegotiation of contracts with Rosmerta and Shimnit India, which carried out vehicle registrations for the EV maker, Ola Electric said in an exchange filing on Feb. 19. “As a result of these ongoing negotiations, the registration numbers for the month of February 2025, as reflected on the VAHAN portal, will be temporarily impacted, while there will be no change in sales.”
On Thursday, Ola Electric shares fell 1.12% to Rs 50.54 apiece on the BSE even as the benchmark Sensex ended the day 0.27% lower at 73,828.91 points. The stock markets were closed on Friday on account of a holiday.
