March 25th, 2025
Ola Electric has resolved its financial dispute with automotive component supplier Rosmerta Group. This settlement has led to the withdrawal of insolvency proceedings against its subsidiary.
The EV maker confirmed it has “amicably settled all outstanding dues” with Rosmerta Group. As a result, Rosmerta has withdrawn its petitions from the National Company Law Tribunal (NCLT) in Bengaluru.
“The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders,” the company stated in its release.
Behind the Settlement Curtain
The resolution comes after a period of tension between the companies. Rosmerta Group had filed an insolvency petition against Ola Electric Technologies Pvt Ltd, a wholly owned subsidiary of the EV maker. They submitted this petition under Section 9 of the Insolvency and Bankruptcy Code due to alleged payment defaults.
Neither company has revealed the exact amount of the outstanding dues in the settlement announcement. However, the dispute appears linked to broader supply chain issues that recently affected Ola Electric.
Weathering the Storm
This settlement marks a positive turn for Ola Electric after weeks of challenges. The company recently faced criticism following reports about gaps between vehicle sales and registrations. Ola explained this discrepancy as a “temporary vendor backlog” in registration plate production.
Moreover, Ola Electric clarified that these problems stemmed from supply chain issues with vendors. Rosmerta Group is one such vendor, as they supply High Security Registration Plates (HSRP) for Ola’s vehicles.
Fighting Back
During this controversial period, Ola’s founder Bhavish Aggarwal didn’t remain silent. He recently claimed certain media outlets and competitors were running an orchestrated campaign against the company.
With this settlement now in place, Ola Electric seems to be actively addressing its operational challenges. This comes as the company continues its ambitious journey in India’s growing electric mobility market.
Both companies have kept the specific terms of their settlement agreement private.
