India's Ola Electric unit settles dues with registration agency

Vehicle registration agency Rosmerta Group will now withdraw a petition to take the unit insolvent, Ola Electric said.

A unit of India's Ola Electric has settled its dues with vehicle registration agency Rosmerta Group, the electric scooter maker said on Tuesday.

Rosmerta will now withdraw a petition to take the unit insolvent, Ola Electric said.

Earlier this month, Rosmerta Digital Services filed a petition against Ola Electric Technologies, alleging a default in payments, but did not mention the size of the default.

Ola Electric had also said a mismatch between company-provided sales data and government registration data in February was due to negotiations with its vehicle registration vendors.

The company said the backlog that arose from the data mismatch has been cleared, but the government has sought information on the matter.

Ola Electric's shares have recovered slightly from a record low since it informed investors of the insolvency petition, but are still down about 27% since listing last August.