Electric vehicle manufacturer Ola has reportedly paid off all outstanding debts to the Rosmerta Group.
In a series of developments, electric mobility company Ola Electric is facing a number of challenges, including an insolvency petition filed against it and investigations into discrepancies between its sales and registration numbers.
The troubles began on March 15, when Rosmerta Group filed a petition to initiate a Corporate Insolvency Resolution Process (CIRP) against Ola Electric, citing payment defaults. However, it has been reported that the two parties have amicably settled their outstanding dues.
The Ministry of Heavy Industries and the Ministry of Road Transport and Highways have prompted inquiries regarding the discrepancy between Ola Electric's sales and registration numbers. The Automotive Research Association of India (ARAI) has been appointed to investigate the issue.
In addition, Ola Electric has received notices from four states regarding trade certificates for some of its stores, and it was revealed that new showrooms launched by the company last year lacked necessary trade certificates, as mentioned in a regulatory filing.
The company's CEO, Bhavish Aggarwal, announced last month that the company would transfer the vehicle registration process in-house, following issues with a vendor managing vehicle registrations for Ola Electric on the government-run Vahan portal.
Despite these challenges, Ola Electric has reported selling 25,000 cars, as per its regulatory filing. However, the future comeback of the company remains uncertain.
It's worth noting that Ola Electric operates a wholly owned subsidiary named Ola Electric Technology Private Limited. The company's net loss has expanded by 50 percent on a year-on-year basis, due to previous problems of faulty products and service centers.
Ola Electric's stock price has taken a significant hit, with the current price standing at ₹51.71 per share, a significant decline from its IPO listing peak of ₹157. In February, only 8,652 units were registered by Ola Electric on the Vahan portal, which can be attributed to the transfer of vehicle registration process.
Despite the challenges, Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders. The company has not issued any official statement regarding its current situation.
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