India News | Rosmerta Digital Seeks Initiation of Insolvency Proceedings Against Ola Electric's Subsidiary

New Delhi, Mar 15 (PTI) Ola Electric Mobility Ltd on Saturday said its vehicle registration service provider Rosmerta Digital Services Ltd has sought the initiation of insolvency proceedings against its wholly owned arm Ola Electric Technologies Pvt Ltd.

In a regulatory filing, the company said, "A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd."

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The petition has been submitted before the National Company Law Tribunal's Bengaluru Bench, alleging default in payment towards the services rendered by the operational creditor and seeking initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd, it added.

The company has sought appropriate legal advice and it strongly disputes the claims made, Ola Electric Mobility said, adding it would "take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter".

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Last month, the company stated that it was renegotiating the terms of the agreement with its agencies -- Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd -- to reduce costs and enhance registration process efficiencies.

Last Wednesday, the company said its vehicle registration process transformation is in its final stages and its daily registrations have improved significantly, increasing to over 800 per day and crossing the average daily sales for January 2025 and February 2025.

The insolvency proceedings come at a time when Ola Electric Mobility is cutting around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)