EV major Ola Electric’s subsidiary, Ola Electric Technologies, is facing an insolvency petition filed under the Insolvency and Bankruptcy Code (IBC) by vehicle registration service provider Rosmerta Digital Services and Rosmerta Safety Systems in the NCLT Bengaluru.
What is the nature of petition filed against Ola Electric’s subsidiary?
Ola Electric’s subsidiary has been alleged on non-payment of dues to two of its vendor companies, Rosmerta Digital Services and Rosmerta Safety Systems, with outstanding dues reportedly totaling ₹22.5 crore.
Since Ola Electric follows a direct-to-consumer model, avoiding traditional dealerships, it has partnered with vendors to assist in vehicle registration and high-security registration plates. Rosmerta Digital handles vehicle registration at regional RTOs, while Rosmerta Safety Systems provides high-security registration plates.
When can a vendor file a petition?
In 2020, the Ministry of Corporate Affairs (MCA) raised the default threshold to ₹1 crore, above which an operational creditor can initiate bankruptcy proceedings against a company.
According to Shriram Subramanian, Founder and MD of InGovern Research Services, the claim would arise if payments were delayed beyond the agreed terms in the purchase agreement, leading to a breakdown of trust between Ola and its vendors.
Does this mean NCLT will initiate insolvency procedures?
The filing of a bankruptcy petition is just the first step. The National Company Law Tribunal (NCLT) may or may not admit the petition, and even if it does, a detailed legal process follows before any insolvency proceedings begin. The NCLT will assess various factors, including the legitimacy of the claim and the nature of the dispute, Subramanian added.
When did Ola begin its contract with Rosmerta Digital?
Ola Electric entered into a contract with Rosmerta Digital on December 16, 2021. In February 2025, the company informed the exchanges that it was renegotiating its agreement with Rosmerta to reduce costs and enhance the registration process’s efficiency.
How does NCLT respond to a petition?
NCLT is required to either accept or reject an insolvency petition within 14 days. Since the petition against Ola Electric has been filed under Section 9, the operational creditor must submit necessary documentation, including copies of invoices, an affidavit confirming that no dispute notice has been received from the corporate debtor, and any records supporting the claim of non-payment.
