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Bhavish Aggarwal’s Ola Electric unit faces insolvency petitions over unpaid dues | Details
The insolvency pleas have been filed over unpaid invoices by a unit of Ola Electric Mobility.
A unit of billionaire Bhavish Aggarwal's Ola Electric Mobility is facing two insolvency pleas from vehicle registration service providers over unpaid dues, Bloomberg reported.
This adds to the EV maker's troubles, which have been under scrutiny due to issues related to its e-scooter quality and customer service.
Vehicle registration services provider Rosmerta Digital Services and high-security registration plates (HSRP) provider Rosmerta Safety Systems have separately filed insolvency petitions against Ola Electric Mobility's closely held unit, Ola Electric Technologies.
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The two companies, Rosmerta Digital and Rosmerta Safety, have claimed unpaid dues worth ₹22 crore and ₹2.5 crore, respectively.
The SoftBank Group-backed company informed exchanges on Saturday night that Rosmerta Digital had filed the insolvency plea with the National Company Law Tribunal in Bengaluru, where the EV maker is based.
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“The Company has sought appropriate legal advice and it strongly disputes the claims made. The Company will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter,” Ola Electric Mobility said in its disclosure to exchanges.
Last month, the company said in a filing that it was “renegotiating” contracts with service providers, including Rosmerta Digital and Shimnit India Pvt. Founder and Chief Executive Officer Bhavish Aggarwal announced on X last week that the company was moving its registrations process “in house.”
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An insolvency petition will be followed by a hearing at the National Company Law Tribunal, which will decide based on the arguments whether the company is insolvent or not. However, there is still some time before such the tribunal reaches a decision.
