Ola Electric has rejected the insolvency petitions filed against its manufacturing arm, Ola Electric Technologies Pvt. Ltd., calling them a retaliatory legal tactic.The company dismissed the insolvency claims as a retaliatory legal tactic, asserting that the disputed amount of ₹40.6 crore is already the subject of pre-existing arbitration proceedings with Anevolve Mando E-Mobility and Sterling E-Mobility Solutions over alleged performance- and warranty-related issues with supplied components.According to Ola Electric, the vendors filed the insolvency petitions under Section 9 of the Insolvency and Bankruptcy Code (IBC) only after the arbitration proceedings had commenced, in an attempt to bypass the quality dispute.The company said it has filed caveats before the National Company Law Tribunal to contest the petitions, citing the existence of a pre-existing dispute.News of the NCLT filings had initially sent Ola Electric's shares down nearly 9 per cent over three consecutive trading sessions.However, following the company's clarification, the stock traded flat at ₹42.6 at 1:14 PM on the BSE. Ola Electric also said it was not aware of any undisclosed information that could explain the movement in its share price.businessline had earlier reported that sources familiar with the matter described it as a commercial dispute, saying Ola Electric had initiated legal proceedings against the suppliers, alleging that the components supplied did not meet the agreed quality 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 had said.Ola Electric has also reassured investors that the vendor disputes will have no impact on its manufacturing schedules, vehicle delivery timelines, or broader operations.The petitions come at a time when the company has reported an improvement in operating performance. According to VAHAN registration data cited by Ola Electric, registrations nearly doubled sequentially to 43,719 vehicles in the April-June quarter of FY27 from 22,252 in the preceding quarter.Published on July 8, 2026