Ola Electric sued by vehicle registration agency over ₹18-20 crore payment default – CNBC TV18

Rosmerta Digital Companies Ltd, a maker of excessive safety quantity plates and a vehicle registration agency, has taken Ola Electric to court docket for defaulting on a payment of roughly ₹18-20 crore. Ola Electric, which is one among India’s main electrical two-wheeler makers, made the disclosure in a inventory change submitting.

The disclosure says that Rosmerta Digital Companies has filed a petition in opposition to Ola Electric at NCLT, Bengaluru alleging default in payment and initiating Company Insolvency Decision Course of underneath Part 9 of the Insolvency and Chapter Code.

On February 19, 2024, Ola Electric had mentioned it was renegotiating contracts with its vehicle registration companies, and flagged that this might quickly have an effect on registrations on the federal government’s vehicle registration portal. Nevertheless, it had clarified that it didn’t forsee any detrimental influence on precise gross sales because of this course of.

As per information from the web site of Ministry of Street Transport and Highways, Ola bought 8,647 scooters in February. The EV startup, nonetheless, claims to have bought greater than 25,000 items in that month.

Beforehand, sources at Ola Electric mentioned that there was no discrepancy in precise gross sales in February, and that the February gross sales numbers would replicate within the vehicle registration information for March. As of March 13, Ola had clocked gross sales of 5,208 items.

Ola Electric is focusing on a gross sales run charge of fifty,000 items per thirty days to develop into EBITDA constructive.

Ola Electric has mentioned that the corporate has sought applicable authorized recommendation, and it strongly disputes the claims made by Rosmerta.  The corporate will take all obligatory and applicable steps to guard its pursuits and defend itself from Rosmerta’s allegations.

Rosmerta’s lawsuit comes whilst Ola Electric faces a probe by the Central Shopper Safety Authority (CCPA). The  authority has sought further paperwork regarding over 10,000 shopper complaints filed in opposition to the corporate and its merchandise.