Ola Electric “Amicably Settled All Outstanding Dues” With Rosmerta Group

Ola Electric has claimed that all outstanding dues between its wholly owned subsidiary, Ola Electric Technology Private Limited and Rosmerta Group has been “amicably settled”. The latter had filed an insolvency petition against the Bengaluru-based EV maker on March 15 before the Bengaluru bench of National Company Law Tribunal (NCLT) alleging payment defaults. The petition included non-payment of services rendered and wanted to initiate a Corporate Insolvency Resolution Process (CIRP) against Ola Electric.

In a media statement floated by Ola Electric, it claims that the “The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders.”

(Also Read: Ola Hits Back At Rosmerta Over Insolvency Petitions)

Rosmerta was one of the vendors managing vehicle registrations for Ola Electric on the government-run Vahan portal. Last month, Ola’s CEO, Bhavish Aggarwal announced that the company would transfer the vehicle registration process in-house and was renegotiating contracts with its vehicle registration service providers, Rosmerta and Shimnit. Consequently, the company's registration numbers on the portal declined significantly in February, with just 8,652 units being registered.

Simultaneously, Ola Electric reported in its regulatory filing that it sold 25,000 scooters. This discrepancy between registration and sales numbers attracted the attention of the Ministry of Heavy Industries and the Ministry of Road Transport and Highways. Both ministries prompted inquiries and appointed the Automotive Research Association of India (ARAI) to investigate the issue.

(Also Read: Ola Electric Likely To Lay Off 1000 People To Reduce Losses)

Now that this problem has been settled, Ola Electric faces other challenges. Previously reported issues include new showrooms launched last year lacking necessary trade certificates. The company has mentioned in a regulatory filing that it has received notices from four states regarding trade certificates for some of its stores. Coupled with previous problems of faulty products and service centers, Ola Electric's net loss has expanded by 50 percent on a year-on-year basis. Its current stock price stands at ₹51.71 per share, a significant decline from its IPO listing peak of ₹157. How the company will make a comeback remains to be seen.