(Bloomberg) – A unit of Ola Electric Mobility Ltd. is facing an unpaid debt petition from two key vehicle registration service providers in India, which adds to the installation hassle of EV manufacturers.
Rosmerta Digital Service Private. People familiar with the matter say that Rosmerta safety systems are suppliers of vehicle registration services and high-security registration boards, respectively – respectively proposed for the closely held Ola Electric Technologies Pvt. the bankruptcy request and cited a free invoice.
Ola Electric Technologies is a wholly owned subsidiary of OLA Electric Mobility, accounting for the majority of parents’ income.
Rosmerta Digital Services claims that just exceeded Rs 220 crore (US$2.5 million) of outstanding membership dues, and its sister company, Rosmerta Safety Systems, has sought payments of nearly Rs 25 million, people say.
The manufacturer of electric scooters, backed by Softbank Group Corp., told the stock exchange late Saturday that Rosmerta Digital Services had filed a bankruptcy request against its subsidiary in the Bangalore National Law Tribunal, where Ola Electric was based. The company said it strongly questioned the claim and was seeking legal advice on the matter.
Rosmerta Digital Services and Rosmerta Security Systems declined to comment. Ola Electric submitted Bloomberg to Bloomberg, requesting comment on its unit’s petition at the time.
The petition is in the midst of a change in how Ola Electric handles vehicle registration. The company said in a filing last month that it was “renegotiating” contracts with service providers including Rosmerta Digital and Shimnit India Pvt. Founder and CEO Bhavish Aggarwal announced on X last week that the company is moving its registration process “inside”.
Bankruptcy petitions against its sector add to growing corporate challenges, which struggles with regulatory scrutiny, customer complaints and financial pressure.
A Bloomberg News survey found that 95% of Ola’s more than 4,000 showrooms lack the necessary approval to display or sell unregistered vehicles. After that, transportation authorities in several states carried out raids, shut down media, grabbed the vehicle and issued notices to the company.
Bloomberg reported earlier this month that Ora Electric is also in a large labor force. Its stock has fallen more than 65% since its IPO debut in August, reflecting more investors’ concerns about its operational and regulatory barriers.
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