Ola Electric is facing another legal challenge after two of its component suppliers approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings over alleged unpaid dues exceeding Rs 40 crore. The petitions add to the growing pressure on the electric vehicle maker, which has been navigating slowing sales and financial headwinds.
According to court filings reviewed by Mint, Sterling E Mobility Solutions and Anevolve Mando eMobility have initiated insolvency proceedings against Ola Electric Technologies, the operating arm of Ola Electric Mobility. The suppliers have alleged that payments for components supplied to the company remain pending beyond the stipulated period.
The filings reportedly show outstanding dues of around Rs 29.8 crore to Sterling E Mobility Solutions and Rs 10.8 crore to Anevolve Mando eMobility. Both companies supply critical electric vehicle components, including traction motors, controllers, inverters, and DC converters used in EV powertrains.
Ola Electric Contest Claims As Supplier Disputes Continue
The report states that Ola Electric has contested the insolvency petitions and filed caveats in response. People familiar with the matter told Mint that the dispute stems from commercial disagreements, with the company also raising concerns over the quality of certain supplied components.
This is not the first time Ola Electric has faced such proceedings. In 2025, Rosmerta Digital Services filed a similar insolvency plea after its commercial partnership with the company ended. That dispute was eventually settled outside court after the dues were cleared.
Financial Pressure Mounts Amid Weak Sales Performance
The latest supplier dispute comes at a challenging time for Ola Electric. During FY26, the company’s revenue declined by 50% year-on-year to Rs 2,253 crore, while vehicle sales dropped by 44% to 173,794 units. Although annual losses narrowed compared to the previous financial year, the company slipped to fifth position in India’s electric two-wheeler market as competition intensified.
Industry experts told Mint that suppliers typically approach insolvency courts only after commercial negotiations fail, making such proceedings a significant escalation in payment disputes. The outcome of the ongoing NCLT hearings could be closely watched by investors and suppliers across the EV ecosystem.
FAQs
- Why are suppliers taking Ola Electric to the NCLT?
Two EV component suppliers have filed insolvency petitions, alleging Ola Electric has unpaid dues exceeding Rs 40 crore.
- What is an insolvency petition?
An insolvency petition is a legal request asking the NCLT to initiate proceedings against a company over unpaid debts.
- Is Ola Electric going bankrupt?
Not necessarily. An insolvency petition is the start of a legal process and does not automatically mean the company is bankrupt.
- Why has Ola Electric received fresh insolvency petitions?
The suppliers claim payments for EV components remain outstanding, while Ola Electric has disputed the claims and contested the petitions.
- What does the NCLT do in insolvency cases?
The NCLT reviews the evidence from both sides and decides whether to admit or reject an insolvency petition.
