Ola Electric Technologies Faces Insolvency Petition Amid Ongoing Restructuring

Ola Electric Technologies Pvt Ltd, a wholly-owned arm of Ola Electric Mobility Ltd, faces an insolvency petition by Rosmerta Digital Services Ltd over alleged payment defaults. Ola disputes the claims and is seeking legal advice. This comes as Ola restructures, cutting around 1,000 jobs to reduce losses.

Ola Electric Mobility Ltd announced on Saturday that Rosmerta Digital Services Ltd has filed an insolvency petition against its subsidiary, Ola Electric Technologies Pvt Ltd. The petition alleges payment defaults for services rendered.

The insolvency petition was submitted to the National Company Law Tribunal in Bengaluru under the Insolvency and Bankruptcy Code, 2016. Ola Electric contests the claims and has sought legal advice to protect its interests while disputing the allegations.

This legal challenge comes amidst Ola's restructuring efforts, which include renegotiating contracts to cut costs and streamlining the vehicle registration process. The company is also undergoing job cuts to reduce financial losses.

(With inputs from agencies.)