Ola Electric has formally rejected insolvency petitions filed against its manufacturing subsidiary, Ola Electric Technologies Pvt. Ltd., characterizing the moves as a retaliatory legal strategy by disgruntled vendors.
The company contends that the suppliers lodged the petitions under Section 9 of the Insolvency and Bankruptcy Code (IBC) only after arbitration proceedings had already commenced.
According to Ola Electric, this timing suggests an attempt to circumvent the ongoing dispute resolution process regarding product quality issues, rather than a genuine insolvency trigger.
The legal escalation comes as the electric vehicle manufacturer faces mounting pressure from its supply chain.
Two component suppliers recently filed the insolvency claims with the National Company Law Tribunal (NCLT), intensifying scrutiny on Ola Electric’s vendor relationships and operational stability.
Market sentiment has remained fragile amid the unfolding legal battles.