Rosmerta Safety Systems Ltd and Rosmerta Digital Services Ltd on Wednesday withdrew the insolvency petitions they had filed before the National Company Law Tribunal (NCLT) against Ola Electric Technologies Pvt Ltd, a subsidiary of electric vehicles manufacturer Ola Electric.
The withdrawal of the petition was allowed by a bench of NCLT comprising coram of Judicial Member Sunil Kumar and Technical Member Radhakrishna Sreepada.
The insolvency petitions were filed over defaulted on payments totaling approximately ₹22 crore and ₹2.5 crore to the two Rosmerta companies. The petitions were filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) before the Bengaluru bench of NCLT.
Ola Electric responded by strongly disputing the claims and also contended that it would take all necessary legal steps to protect its interests.
The company mentioned it was already in the process of renegotiating contracts with its vehicle registration agencies including Rosmerta. This renegotiation was cited as the reason for a temporary dip in vehicle registrations on the government's Vahan portal in February 2025, leading to a discrepancy between reported sales figures and official registration data. This discrepancy had also drawn scrutiny from the Ministry of Heavy Industries and the Ministry of Road Transport and Highway
While the company claimed sales of 25,000 units, only about 8,600 were registered, a discrepancy attributed to a "temporary" backlog caused by the termination of contracts with two registration vendors. This situation prompted inquiries from India's heavy industries and road transport ministries.
The news of the insolvency petitions and operational challenges negatively impacted Ola Electric's stock performance. Shares fell over 6% to a record low of ₹47.4, marking a decline of approximately 38% from the IPO price of ₹76 in August 2024. The company has also faced declining sales, increased regulatory scrutiny, and reported losses of ₹564 crore in the October-December quarter of FY25
This development occurred amidst a period of increased scrutiny for Ola Electric. Besides the discrepancy in sales and registration data, the company has also faced reports of regulatory inquiries regarding trade certificates for some of its stores in certain states.
Rosmerta was represented by Advocate Annapoorna V.