Rosmerta Digital Services has filed an insolvency petition against Ola Electric Mobility’s subsidiary, Ola Electric Technologies, before the National Company Law Tribunal (NCLT), alleging that the electric two-wheeler maker has defaulted on payments for the services provided. This comes at a time when Ola Electric’s vehicle registration process transformation is in its final stages.
- The insolvency plea has been filed under Section 9 of the IBC
- The petition has been filed before the Bengaluru Bench of the NCLT
- Ola was renegotiating terms with Rosmerta and Shimnit India to cut costs, enhance efficiencies
Rosmerta files a petition against Ola Electric Technologies
Ola Electric Mobility has informed in a stock exchange filing that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Rosmerta Digital Services, an operational creditor of its wholly owned subsidiary Ola Electric Technologies.
“The petition has been submitted before the NCLT – Bengaluru Bench, alleging default in payment towards the services rendered by the operational creditor and seeking initiation of the Corporate Insolvency Resolution Process against Ola Electric Technologies,” the company said.
The automaker said it is strongly disputing the claims made by Rosmerta Digital in the petition and has sought appropriate legal advice.
What does section 9 of the IBC mean?
Section 9 of the IBC interprets that after the expiry of the period of ten days from the date of delivery of the notice or invoice demanding payment under sub-section (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or notice of the dispute under sub-section (2) of section 8, the operational creditor may file an application before the Adjudicating Authority for initiating a corporate insolvency resolution process.
Last week, Ola Electric reported that it had successfully implemented the Network Transformation and Opex (operational expense) Reduction Program, a companywide initiative launched in November 2024 to reduce costs and improve customer experience. It has resulted in a sustainable cost reduction of Rs 90 crore per month and could help the company’s automotive division achieve breakeven at the Ebitda level (earnings before interest, taxes, depreciation and amortisation) in the first quarter of the next financial year.
About Rosmerta Digital
Rosmerta Digital, a subsidiary of Rosmerta Technologies, provides digitally enabled services and digitally enabled channel sales of vehicles, components and accessories. The company approached the NCLT a couple of weeks after Ola Electric said it was renegotiating terms with Rosmerta Digital and Shimnit India to reduce costs and enhance registration process efficiencies.
Rosmerta’s dispute arises while Ola Electric is being probed by the Central Consumer Protection Authority (CCPA), which has sought additional documents for over ten thousand ongoing consumer cases against the company and its products.
Also see:
Ola Electric to get Rs 74 crore incentive from Government under PLI scheme
