Ola Electric Faces Insolvency Petition Over ₹22.5 Crore Dues
EV giant Ola Electric is facing an insolvency petition filed under the Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT) Bengaluru. The petition has been filed by Rosmerta Digital Services and Rosmerta Safety Systems, alleging non-payment of ₹22.5 crore in outstanding dues by Ola Electric’s subsidiary, Ola Electric Technologies.
Why Was the Insolvency Petition Filed?
Ola Electric, which follows a direct-to-consumer model, relies on third-party vendors for vehicle registration and high-security number plates.
- Rosmerta Digital Services handles vehicle registration at regional transport offices (RTOs).
- Rosmerta Safety Systems – Supplies high-security registration plates for Ola Electric’s vehicles.
Both companies claim that Ola Electric failed to clear pending payments, leading them to initiate insolvency proceedings.
Legal Grounds for Filing the Petition
As per the Ministry of Corporate Affairs (MCA) guidelines, an operational creditor can initiate bankruptcy proceedings if a company defaults on payments exceeding ₹1 crore.
According to Shriram Subramanian, MD of InGovern Research Services, the case hinges on whether Ola Electric delayed payments beyond agreed contractual terms, leading to a trust breakdown with its vendors.
Will NCLT Initiate Insolvency Proceedings?
The filing of a bankruptcy petition does not automatically result in insolvency proceedings. The NCLT will first assess:
- The validity of the claims.
- Any existing payment disputes between Ola and its vendors.
If the NCLT finds merit in the petition, a detailed legal process will follow before any insolvency action is initiated.
Ola’s Contract with Rosmerta
- Ola Electric signed a contract with Rosmerta Digital on December 16, 2021.
- In February 2025, Ola Electric informed stock exchanges that it was renegotiating its agreement with Rosmerta to cut costs and improve efficiency in vehicle registration.
How Will NCLT Respond?
- The NCLT must accept or reject the insolvency petition within 14 days.
- Since the case falls under Section 9 of the IBC, Rosmerta, as an operational creditor, must submit:
- Invoices proving non-payment.
- An affidavit confirming no prior dispute notice from Ola Electric.
- Additional documents supporting their claims.
What’s Next for Ola Electric?
If the petition is admitted, Ola Electric will have to respond legally or settle outstanding dues to avoid insolvency proceedings. The outcome of this case could have significant implications for Ola Electric’s financial standing and vendor relationships.
