An insolvency plea has been filed against Ola Electric by Rosmerta Digital Services on Saturday, March 15 over alleged default in payments, as stated in Ola’s exchange filings. Rosmerta Digital Services was responsible for handling vehicle registrations for the two-wheeler manufacturer in the respective regional transport office (RTO).
“Rosmerta Technologies is seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies Private Limited,” stated the company. The plea has been filed before the National Company Law Tribunal (NCLT), Bengaluru.
Ola Electric’s subsidiary, Ola Electric Technologies, is seeking appropriate legal advice concerning the allegations made against the leading two-wheeler manufacturer. The company also “strongly” disputes the claims made by the petitioner.
Ola Electric’s Cost-Cutting Measures
Ola Electric renegotiated its terms with its vendors, Rosmerta Digital Services and Shimnit India, to reduce costs and enhance registration process efficiencies, as stated by Ola Electric on February 19.
The negotiations were undertaken due to falling sales of the two-wheeler manufacturer. Recently, the electric scooter manufacturer has reported multiple layoffs, affecting over a thousand employees, amid alarming losses and allegations of violating regulations.
Ola Electric plans to take all necessary and appropriate steps to protect its interests and object to the allegations in the aforementioned matter, as stated by the company.
