Ola Electric has described the matter as a commercial dispute, saying it had already initiated legal action against the suppliers over alleged quality issues with the components.
Electric two-wheeler maker Ola Electric is facing fresh insolvency proceedings after two of its component suppliers moved the National Company Law Tribunal (NCLT), alleging payment defaults of around ₹40 crore.In separate petitions filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, Sterling E-Mobility Solutions Ltd., the EV components arm of listed Sterling Tools Ltd., and Anevolve Mando eMobility Pvt. Ltd., part of the Anand Group, have sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies Pvt. Ltd., the company’s wholly owned subsidiary.Sources close to the development described the matter as a commercial dispute, saying Ola Electric had earlier initiated legal proceedings against the suppliers, alleging that the components supplied did not meet the agreed standards.“We have filed a suit stating that the quality has not been met. We filed our case first, following which the vendors moved under the IBC,” a person familiar with the matter said.Latest in a series of legal disputesThe development marks the latest legal dispute between Ola Electric and its vendors. In March last year, Rosmerta Digital Services Ltd. had also filed an insolvency petition before the Bengaluru bench of the NCLT, alleging payment defaults for services rendered to Ola Electric Technologies. That dispute was subsequently resolved between the parties, and the petition was withdrawn.Company reports improving operational performanceThe latest petitions come at a time when Ola Electric has reported improved operating performance. According to VAHAN registration data cited by the company, registrations nearly doubled sequentially to 43,719 vehicles in the April-June quarter of FY27, up from 22,252 in the preceding quarter.The company also narrowed its consolidated net loss by 42 per cent to ₹500 crore in the March quarter (Q4 FY26), from ₹870 crore a year earlier. The improvement, however, came alongside lower revenue and vehicle volumes, which the company had described as part of a “year of reset.”Published on July 6, 2026
