Ola Electric Settles Dues With Rosmerta Group
This has led the creditor to retract the insolvency petition filed before the NCLT;
Ola Electric Settles Dues With Rosmerta Group
This has led the creditor to retract the insolvency petition filed before the NCLT
Electric two-wheeler maker Ola Electric Technologies has stated clearing all outstanding dues with its wholly-owned subsidiary and creditor, Rosmerta Group.
The Bengaluru-based firm said it was committed to maintaining strong business relationships and ensuring timely resolution of any commercial issues.
This has led Rosmerta to retract the insolvency petition lodged against the company, Ola Electric Mobility stated.
Rosmerta had filed the plea in March before the Bengaluru bench of the National Company Law Tribunal (NCLT), alleging payment defaults. The claims included non-payment for services it rendered. The company sought to initiate a Corporate Insolvency Resolution Process (CIRP) against Ola Electric.
Rosmerta was one of the vendors managing vehicle registrations for Ola Electric on the government-run Vahan Portal.
Recently, the Bhavish Aggarwal-led firm said it was renegotiating contracts with its vehicle registration service providers, including Rosmerta and Shimnit India. It led to a decline in registration on the portal.
While 8,652 Ola Electric vehicles were registered on the portal, the company reported sales of 25,000 vehicles in regulatory filings, leading to discrepancies in the government registration data.
It prompted inquiries from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
However, Ola Electric attributed it to a ‘temporary backlog’ caused by ongoing negotiations with vendors handling registrations. It said the backlog was being cleared, with daily registrations exceeding 50 percent of its average sales over the past three months.
The company disclosed that it received notices in four states regarding trade certificates for some of its stores.
Ola Electric has been facing competition from rivals, including Bajaj Auto, TVS Motor, and Ather Energy, which is prepared for an IPO.
Recently, the company projected that its automotive division would turn Ebitda positive in the April-June quarter, supported by cost-cutting initiatives to save Rs.90 crore monthly.
