Top News

Days after it emerged that Sterling E-Mobility Solutions and Anevolve Mando eMobility had initiated insolvency proceedings against Ola Electric, the listed EV maker is now reportedly facing a third such case. 

According to LiveLaw, the Bengaluru bench of the National Company Law Tribunal (NCLT) has now issued a notice against Ola Electric in connection with an insolvency plea filed by vendor Seoyon E-Hwa Summit Mobility Krishnagiri Pvt. Ltd.. The vendor has reportedly sued the listed company over alleged default on payment totalling ₹9.57 Cr.

“Subject to producing the originally signed extract of board resolution dated 11.03.2026, appearing on page 28 of the paper book, and identity documents of signatory to petition, let notice of petition be sent to respondent,” a bench comprising judicial member Sunil Kumar Aggarwal and technical member Banwari Lal Meena reportedly said. 

As per the report, advocate Dhyan Chinnappa, appearing for Seoyon E-Hwa Summit Mobility Krishnagiri, submitted that the vendor supplied automobile parts to Ola Electric. He further submitted that the EV maker owed the vendor ₹21.19 Cr when the demand notice was issued to Ola Electric on April 2.

The vendor further reportedly claimed that the listed original equipment manufacturer (OEM) disputed the liability after receiving the demand notice, citing issues related to warranty and supply of spare parts. 

However, as per Seoyon E-Hwa Summit Mobility, Ola Electric later paid ₹10.62 Cr, leaving an outstanding amount of ₹9.57 Cr. 

After hearing the submissions, the NCLT reportedly issued directions to send a notice to Ola Electric after the vendor complies with submissions related to the board resolution and identity documents. The tribunal has now posted the matter for next hearing on August 31.

This comes barely days after it first came to light that the EV maker was facing insolvency petitions from two of its suppliers, Anevolve Mando E-Mobility Pvt Ltd and Sterling E-Mobility Solutions Pvt Ltd, over alleged unpaid dues.

However, the Bhavish Aggarwal-led company later issued a clarification, saying that the matter stemmed from “pre-existing disputes” that are already under arbitration. Responding to a query from the stock exchanges, Ola Electric said it had earlier raised warranty and performance concerns regarding certain parts supplied by the two vendors. 

The EV maker also said that it has initiated arbitration proceedings and also moved the Commercial Court in Bengaluru under the Arbitration and Conciliation Act, 1996, seeking interim relief until arbitral tribunals are constituted.

This is not the first time that the EV maker has been embroiled in insolvency proceedings. In March last year, registration service provider Rosmerta Group also filed an insolvency petition against the company. The two later reached a settlement and the insolvency petition was withdrawn. 

The petitions come as Ola Electric is trying to chart an operational turnaround after a challenging couple of years. The past year has seen the OEM’s sales and market share plummet, while losses have remained elevated amid rising customer complaints.

On the financial front, Ola Electric managed to narrow its net loss 43% YoY to ₹500 Cr in Q4 FY26, while revenue fell 57% YoY to ₹265 Cr due to lower deliveries.

Going ahead, Ola Electric said that it aims to regain a 15% to 20% market share within the ongoing calendar year, expand its electric motorcycle business and increase the capacity of its gigafactory to 6 GWh in Q1 FY27. 

The company also undertook its qualified institutional placement (QIP) last month, raising ₹780.24 Cr.

The post Ola Electric Faces Third Insolvency Petition, Gets NCLT Notice appeared first on Inc42 Media.