26 March 2025, Hyderabad: In a significant development, Ola Electric, the leading electric two-wheeler manufacturer, announced on Tuesday that it has successfully settled all outstanding dues with its creditor, Rosmerta Group. The resolution comes as Rosmerta, a wholly owned subsidiary, has applied to withdraw its insolvency petition against Ola Electric Technologies.
The Bhavish Aggarwal-led company confirmed in a stock exchange filing that Rosmerta has formally initiated the process of withdrawing its insolvency plea, which was originally filed before the Bengaluru bench of the National Company Law Tribunal (NCLT). The petition was filed on March 15, alleging non-payment for services rendered.
Dispute Resolved Amicably
Following negotiations between the two companies, Ola Electric has made the necessary payments to Rosmerta, thereby resolving the financial dispute. According to the company’s statement, “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 the timely resolution of any commercial issues.”
Rosmerta is a well-known player in vehicle registration services and was one of the vendors managing vehicle registrations for Ola Electric on the government-run Vahan portal. The dispute arose over delayed payments for services rendered, which led Rosmerta to seek legal recourse through the insolvency plea.
Ola Electric’s Ongoing Business Strategy
Ola Electric has been at the forefront of India’s Electric Vehicle Revolution: Trends, Challenges and Opportunities | IBEF with its electric scooters gaining widespread popularity. The company has also been actively renegotiating contracts with its vehicle registration service providers, including Rosmerta and Shimnit India, to streamline its business operations.
Industry experts believe that this development signals Ola Electric’s commitment to resolving financial and operational challenges swiftly to maintain business stability. By settling its dues and avoiding prolonged legal battles, Ola Electric aims to focus on its expansion plans and product innovation in the EV sector.
Implications for Ola Electric and the EV Industry
The withdrawal of the insolvency petition is a positive step for Ola Electric as it avoids potential reputational damage and operational disruptions. The company’s ability to resolve the issue efficiently reinforces its financial health and commitment to vendor partnerships.
With the EV market in India witnessing rapid growth, such proactive measures are crucial for companies like Ola Electric to maintain investor confidence and consumer trust. This resolution also highlights the importance of effective financial management and transparent business dealings in the competitive EV industry.
As Ola Electric continues to expand its presence in the Indian market, the resolution of this dispute marks a crucial milestone, ensuring uninterrupted operations and reinforcing its position as a leading player in the country’s electric mobility landscape.
Source: The Economic Times
