2 weeks Ago
Rosmerta Digital Services, an operational creditor of Ola Electric Technologies, has filed a plea to initiate insolvency proceedings against the wholly owned subsidiary of electric two-wheeler maker Ola Electric, over alleged payment defaults.The petition, filed before the Bengaluru bench of the National Company Law Tribunal (NCLT), claims non-payment for services rendered and seeks to initiate a corporate insolvency resolution process (CIRP) against Ola Electric Technologies.Ola Electric has disputed the claims and said it plans to challenge the petition through legal proceedings.
“The company will take all necessary and appropriate steps to protect its interests and challenge the allegations in this matter,” the Bengaluru-based company said in the filing.This comes as Ola Electric renegotiates contracts with its vehicle registration service providers, Rosmerta Digital Services and Shimnit India. In a February stock exchange filing, the company said it was revising agreements with these agencies as part of a sales restructuring.
The development follows a period of layoffs and internal restructuring at Ola Electric amid declining market share and widening financial losses. Over the past two months, the company has let go of around 1,200 employees and contract workers across procurement, fulfillment, customer relations, and charging infrastructure departments.Earlier this week, Ola Electric said it expects its automotive business to turn Ebitda positive in the quarter beginning April 1, aided by cost-cutting measures that it claims will save around Rs 90 crore per month.
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