Ola Electric Mobility Ltd disclosed on Saturday that its vehicle registration partner, Rosmerta Digital Services Ltd, has filed a petition to initiate insolvency proceedings against its wholly owned subsidiary, Ola Electric Technologies Pvt Ltd. The move, lodged under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), was submitted to the National Company Law Tribunal (NCLT) Bengaluru Bench, alleging payment defaults for services provided.

In a regulatory filing, Ola Electric stated, “The petition seeks the initiation of the Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies Pvt Ltd.” The company, however, vowed to contest the claims, asserting it has sought legal counsel and will take “all necessary steps” to protect its interests.

This development follows Ola’s February announcement of renegotiating terms with Rosmerta Digital Services and Shimnit India Pvt Ltd to cut costs and streamline vehicle registrations. Last week, Ola reported progress, with daily registrations surpassing 800, exceeding January and February 2025 sales averages. Rosmerta, a key player in digital vehicle registration services, had been integral to Ola’s operations.

The insolvency plea coincides with Ola Electric’s broader restructuring efforts, including plans to cut approximately 1,000 jobs to curb losses. The Bengaluru-based electric vehicle maker, led by Bhavish Aggarwal, faces mounting pressure as it navigates financial challenges and operational overhaul. The NCLT’s response to Rosmerta’s petition could further complicate Ola’s path forward.