Rosmerta Digital seeks initiation of insolvency proceedings towards Ola Electrical’s subsidiary

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Ola Electrical Mobility Ltd on Saturday (March 15, 2025) stated its automobile registration service supplier Rosmerta Digital Companies Ltd has sought the initiation of insolvency proceedings towards its wholly owned arm Ola Electrical Applied sciences Pvt Ltd.

In a regulatory submitting, the corporate stated, “A petition has been filed beneath Part 9 of the Insolvency and Chapter Code, 2016 (IBC) by M/s. Rosmerta Digital Companies Ltd, an operational creditor of Ola Electrical Applied sciences Pvt Ltd.”

The petition has been submitted earlier than the Nationwide Firm Legislation Tribunal’s Bengaluru Bench, alleging default in fee in the direction of the companies rendered by the operational creditor and looking for initiation of the company insolvency decision course of (CIRP) towards Ola Electrical Applied sciences Pvt Ltd, it added.

The corporate has sought acceptable authorized recommendation and it strongly disputes the claims made, Ola Electrical Mobility stated, including it could “take all obligatory and acceptable steps to guard its pursuits and object to the allegations within the aforesaid matter”.

Final month, the corporate acknowledged that it was renegotiating the phrases of the settlement with its businesses — Rosmerta Digital Companies Pvt Ltd and Shimnit India Pvt Ltd — to cut back prices and improve registration course of efficiencies.

Final Wednesday (March 12, 2025), the corporate stated its automobile registration course of transformation is in its last levels and its each day registrations have improved considerably, rising to over 800 per day and crossing the common each day gross sales for January 2025 and February 2025.

The insolvency proceedings come at a time when Ola Electrical Mobility is reducing round 1,000 jobs throughout totally different features as a part of a restructuring train to cut back losses.