Ola Electric Faces Third Insolvency Petition, NCLT Issues Notice
Indian electric vehicle maker Ola Electric has been issued a notice by the National Company Law Tribunal (NCLT) concerning a third insolvency petition. The petition was filed by vendor Seoyon E-Hwa Summit Mobility Krishnagiri over alleged payment default.
Ola Electric, the Indian electric vehicle manufacturer, is facing a third insolvency petition after vendor Seoyon E-Hwa Summit Mobility Krishnagiri filed a plea with the National Company Law Tribunal (NCLT). The vendor is reportedly seeking payment of ₹9.57 crore (approximately $1.15 million USD) for automobile parts supplied to Ola Electric.
The NCLT's Bengaluru bench has reportedly issued a notice to Ola Electric following submissions from the vendor's advocate. According to reports, the vendor claimed an outstanding amount of ₹9.57 crore after Ola Electric allegedly disputed liability citing warranty and supply issues, though payments totaling ₹10.62 crore were made.
The tribunal has scheduled the next hearing for August 31, after directing the vendor to comply with certain procedural requirements. This development follows two earlier insolvency petitions filed by suppliers Anevolve Mando E-Mobility and Sterling E-Mobility Solutions over alleged unpaid dues.
Ola Electric had previously stated that the disputes with the earlier mentioned suppliers stem from "pre-existing disputes" already under arbitration, involving warranty and performance concerns raised by the company. The EV maker also initiated arbitration proceedings and sought interim relief in a commercial court.
Despite these legal challenges, Ola Electric is working towards an operational turnaround. The company aims to regain a 15-20% market share within the calendar year, expand its electric motorcycle business, and increase its gigafactory capacity to 6 GWh in Q1 FY27.