Rosmerta Digital Services has formally withdrawn its insolvency petition against Ola Electric from the National Company Law Tribunal’s (NCLT) Bengaluru bench, ending the two companies’ ongoing financial dispute.
Rosmerta had previously accused Ola Electric Technologies Private Limited of not paying dues worth ₹26.75 crore for services provided for high-security number plates. The petition was filed to trigger insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). But in a stock exchange filing on Tuesday, Ola said the dispute had been resolved and the petition was withdrawn.
The dispute involved three entities: Ola Electric Mobility, its subsidiary Ola Electric Technologies, and Rosmerta Digital Services. Rosmerta had claimed that payments for services provided remained pending, prompting the legal action.
Following the announcement, shares of Ola experienced volatility in early trade. The stock initially rose by 3.6% but later settled 3.19% lower at ₹53.95.
The settlement comes against the backdrop of mounting regulatory pressure on Ola Electric. Over the last few weeks, the company has witnessed enforcement action in various states such as Maharashtra, Madhya Pradesh, and Rajasthan, where officials from RTOs have raided multiple Ola stores. Charges include lack of proper trade certificates and showing of unregistered vehicles. More than 50 electric two-wheelers have been said to have been seized during the raids.
Data indicates that Ola has launched over 4,000 stores since 2022, but only around 100 of the 3,400 documented outlets possess the necessary trade certification under the Motor Vehicles Act. This has led to accusations of non-compliance and further legal complications for the firm.
Ola had earlier rejected these claims, saying it was going to challenge the action and was in talks with lawyers. The company reaffirms its commitment to complying with the law.
Rosmerta’s insolvency application being withdrawn, however, is a significant relief for Ola and provides the company with some wiggle room as it navigates increasing legal and regulatory hurdles.
Also Read: Ola Electric to Unveil Roadster X Electric Motorcycle in India
