Insolvency petitions against Ola Electric being dropped

Bengaluru: The Rosmerta group has filed a memo for the withdrawal of its petitions under Section 9 of the Insolvency and Bankruptcy Code, 2016 against an Ola Electric subsidiary, Ola said in a statement on Tuesday.

Ola Electric has settled outstanding dues between its wholly owned subsidiary, Ola Electric Technologies and the Rosmerta Group, the EV maker informed.

“Pursuant to the settlement, the Rosmerta Group has filed the memo for withdrawal of the said petitions from NCLT (National Company Law Tribunal), Bengaluru,” said Ola.

The matter now stands fully resolved, the statement declared.

“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 timely resolution of any commercial issues,” noted Ola.

Later this month and in April, Ola has upcoming meetings with investors.

Ola stocks, which opened at Rs 57.50 apiece, rose to Rs 57.73 during the day, following this announcement. However, they closed lower at Rs 54.12 per share.

Earlier this month, vendors Rosmerta Digital Services Private and Rosmerta Safety Systems filed insolvency petitions against the Ola subsidiary over non-payment of dues, not disclosing the amount.

Previously, when addressing its registration-sales data mismatch and backlog for the month of February, Ola said that this was “due to ongoing negotiations with our vendors responsible for vehicle registrations”.

The firm further said that it had discontinued contracts with two nationwide vendors managing its registration process as part of its strategy to streamline operations and drive profitability.

Ola also recently received notices in four states with regard to trade certificates for some of its stores.