The top producer of electric two-wheelers in India, Ola Electric Mobility Ltd., is currently embroiled in a court battle after one of its major suppliers, Rosmerta Digital Services Pvt. Ltd., filed for bankruptcy against its wholly owned subsidiary. According to the vendor, Ola Electric Technologies Pvt. Ltd. failed to pay Rs 17–18 crore for the services that were provided. The National Company Law Tribunal (NCLT) in Bengaluru is now hearing the case.
In response, Ola Electric has vehemently denied the claims. “The company has sought appropriate legal advice and it strongly disputes the claims made,” Ola Electric said in an exchange filing. “We will take all necessary and appropriate steps to protect our interests and object to the allegations in this matter.”
The Root of the Dispute
Rosmerta Digital Services was responsible for handling vehicle registrations for Ola Electric on the government’s VAHAN website. However, in February 2025, Ola Electric severed ties with Rosmerta and moved vehicle registration processes in-house. The decision was reportedly made to cut costs and expedite operations as the company pushes toward profitability.
While the move seemed strategic from a business standpoint, it has resulted in a financial dispute, with Rosmerta alleging that Ola Electric has failed to clear its outstanding dues. The dispute is further complicated by discrepancies in Ola Electric’s vehicle registration data.
Registration Discrepancies Raise Eyebrows
Ola Electric’s decision to bring registration processes in-house appears to have had unintended consequences. In February 2025, the company claimed to have sold 25,000 electric scooters. However, only 8,390 of these were officially registered on the VAHAN portal.
Ola Electric had attributed this gap to ongoing contract renegotiations with both Rosmerta and another vendor, Shimnit India, which also handled registrations. In an exchange filing on February 19, the company reassured stakeholders that while registration numbers were temporarily impacted, overall sales figures remained unchanged.
Financial and Market Impact
The legal dispute has cast a shadow over Ola Electric’s stock performance. On Thursday, Ola Electric’s shares dropped by 1.12%, closing at Rs 50.54 per share on the Bombay Stock Exchange (BSE). While broader market trends also played a role—Sensex ended 0.27% lower at 73,828.91—the news of the insolvency petition has likely fueled investor concerns.
For a company aggressively expanding its electric mobility ecosystem, including battery manufacturing through Ola Cell Technologies Pvt. Ltd., financial discipline and vendor relationships are crucial. Any misstep in vendor payments could impact future supply chain collaborations and raise questions about the company’s liquidity.
What’s Next for Ola Electric?
Ola Electric’s shift towards in-house registration processes suggests that the company is trying to streamline operations and reduce third-party dependencies. However, the ongoing dispute with Rosmerta could lead to further regulatory scrutiny and operational delays.
The NCLT proceedings will determine whether the insolvency petition has merit. If the tribunal rules in favor of Rosmerta, Ola Electric may have to settle the dues promptly to avoid reputational damage and financial penalties. Conversely, if Ola Electric successfully contests the claims, it would reinforce its position in managing vendor relationships and financial obligations.
Credits: NDTV Profit
A Test for Ola Electric’s Leadership
Ola Electric has been leading India’s EV revolution under Bhavish Aggarwal’s direction. Rapid growth does, however, bring with it the difficulty of overseeing a variety of stakeholders, such as suppliers, financiers, and authorities. The company’s ability to handle financial difficulties while continuing on its aggressive growth trajectory will be evaluated by this insolvency petition.
Ola Electric’s long-term success will depend on preserving financial credibility and assuring seamless vendor operations in the face of India’s EV market’s growing competition. All eyes will be on the company’s response to this challenge and whether it can weather the controversy undamaged as the court proceedings progress.
