Ola Electric Reaches Settlement, Rosmerta Group Withdraws Insolvency Pleas

The dispute originated when Rosmerta Digital Services and Rosmerta Safety Systems filed insolvency petitions against Ola Electric Technologies, citing unpaid dues.

On Tuesday, Ola Electric announced that the matter has been settled amicably.

Source : Ola Electric

Ola Electric Technologies Private Limited reached a financial settlement with the Rosmerta Group, leading to the withdrawal of insolvency petitions previously filed against the company. The resolution was confirmed in a regulatory filing on Tuesday.

The dispute originated when Rosmerta Digital Services and Rosmerta Safety Systems filed insolvency petitions against Ola Electric Technologies, citing unpaid dues, reported Business Standard. According to reports, Rosmerta Digital Services claimed outstanding payments of over Rs 22 crore (approximately $2.5 million), while Rosmerta Safety Systems sought nearly Rs 2.5 crore in dues.

On Tuesday, Ola Electric announced that the matter has been settled amicably. As a result, Rosmerta has formally withdrawn the insolvency petitions from the National Company Law Tribunal (NCLT) in Bengaluru. The company reiterated its commitment to fostering strong business relationships and ensuring prompt resolution of commercial matters.

Ola Electric's Operational Challenges

This settlement comes at a time when Ola Electric is working to streamline its operations. The company previously addressed discrepancies between its sales data and government registration figures in February, attributing the mismatch to ongoing negotiations with vehicle registration vendors.

Ola Electric clarified that the backlog arising from this data mismatch has now been resolved. However, the government has sought further clarification on the issue.

"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 per cent of our three-month daily sales average. About 40 per cent of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025," the company stated. As of March 25, the shares of Ola Electric closed at Rs 54.15 apiece, dipping 2.82 per cent.