Bhavish Aggarwal-led Ola Electric settles all outstanding dues with Rosmerta

Ola Electric said it has settled all outstanding dues between its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd, and the Rosmerta Group.

As a result, the Rosmerta Group has filed the memo for withdrawal of the insolvency petitions filed before the National Company Law Tribunal (NCLT), Bengaluru, the Bhavish Aggarwal-led electric two-wheeler maker said in a statement.

“The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders,” it said.

“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 timely resolution of any commercial issues,” said Ola Electric.

Reacting to the development, shares of Ola Electric rose 4% in opening trade to hit a high of ₹58 on the BSE, taking the company's market cap to around ₹25,000 crore.

The statement comes days after an insolvency petition was filed against its subsidiary Ola Electric Technologies by operational creditor Rosmerta Digital Services Ltd at National Company Law Tribunal’s (NCLT’s) Bengaluru Bench. The insolvency plea alleged a default in payment towards the services rendered by Rosmerta Digital.

The EV maker in February revealed that it had renegotiated its agreements with vehicle registration agencies, a decision that led to a temporary impact on registration figures on the Vahan portal in February. The company stated that the renegotiations were intended to lower costs and simplify the registration process.

According to Vahan, Ola's electric vehicle registrations in February reached 8,647 units. However, the company asserted that it sold over 25,000 units during the month, capturing a market share of more than 28%.

Calling it is a straightforward case of a “temporary registration backlog”, Ola Electric alleged certain vested interests have “deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns.” “Our sales remain strong, and the temporary backlog in February was due to ongoing negotiations with our vendors responsible for vehicle registrations. This backlog is being rapidly cleared, with daily registrations exceeding 50% of our three-month daily sales average. 40% of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025,” Ola Electric said last week.

“This intensified after we discontinued contracts with two nationwide vendors managing our registration process as part of our strategy to streamline operations and drive profitability. Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability,” the electric scooter maker said.

Meanwhile, Ola Electric has received notices in four states for allegedly operating stores without necessary trade certificates. The automaker last week said it is in the process of responding to the same. The EV maker said it has also received emails requesting for information from the ministry of heavy industries (MHI) and ministry of road transport and highways of India (MORTH). The queries pertain to clarification on the non-compliance to the requirement of trade certificates by its showrooms and the large gap in vehicle registration as per VAHAN portal and sales as per the company’s regulatory filing for the month of February.