Ola Electric settles dues with vehicle registration company
Rosemerta, which specialises in automotive security products, registration plates and other automotive components, handled vehicle registrations for Ola Electric
Ola Electric has finally settled its entire outstanding dues of over ₹26 crores with one of its vendor partners, Rosemetra Group, which will help it to restart the process of vehicle registration.
The Bengaluru-based EV manufacturer said this in a stock exchange filing that it owed no more money to Rosemetra after paying up a total sum of ₹26.75 crores.
Earlier this month, Rosemerta had filed a petition against Ola Electric Technologies, alleging a default in payments, but did not mention the size of the default.
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Rosemetra withdraws petition
Rosemerta has now withdrawn its petitions filed before the National Company Law Tribunal, Bengaluru to take the unit insolvent, Ola Electric said.
Rosemerta, which specialises in automotive security products, registration plates and other automotive components, handled vehicle registrations for Ola Electric across India.
The non-payment of dues by Ola Electric had resulted in vehicle registrations being stalled.
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Ola blames media
Ola Electric, which has been facing a string of problems in recent years, said recently that its low monthly sales figures were due to a temporary backlog in vehicle registrations.
The vendor backlog stemmed from the slow production of high security registration plates, a task which Rosemerta performed for Ola.
Ola Electric criticised a section of the media and “vested interests” for misrepresenting the situation as a regulatory issue.