New Delhi: Two key suppliers of Ola Electric Technologies Pvt. Ltd., the operating arm of listed Ola Electric Mobility Ltd. that accounts for nearly all of its revenue, have moved the National Company Law Tribunal seeking insolvency proceedings over unpaid dues of more than ₹40 crore, according to court filings reviewed by Mint and three people aware of the matter.
Sterling E-Mobility Solutions Ltd., the EV components arm of listed Sterling Tools Ltd., and Anevolve Mando eMobility Pvt. Ltd., part of the ₹20,000-crore listed Anand Group, have initiated proceedings against Ola Electric Technologies, alleging that the company failed to clear payments for components supplied to it.
As per Ola Electric Technologies’ filings with the ministry of corporate affairs (MCA), the company’s dues of ₹29.8 crore to Sterling and ₹10.8 crore to Anevolve were pending for more than 45 days, prompting the companies to approach the tribunal.
The Bengaluru bench of NCLT is hearing Sterling’s petition on Monday, about a month after hearing Anevolve Mando's plea, marking the latest supplier dispute to confront the electric two-wheeler maker after a similar petition was filed by one of its registration agencies last year.
“This is a commercial dispute. The suppliers want their dues paid, while Ola Electric also has claims of its own, having raised issues about the quality of parts. Before reaching the courts, this has been going on for a while between the companies,” the first person aware of the matter said, on the condition of anonymity as proceedings are ongoing.
Sterling E-Mobility is in the business of making components like traction motors, motor control units, and DC converters, among others, which are considered a key part of an electric vehicle. Anevolve makes traction motors, controllers, inverters, and AC/DC converters, among other components important for an electric vehicle.
Sterling and Anevolve did not respond to queries on the case. Queries emailed to Ola Electric did not elicit a response till publishing.
Cases filed months apart, Ola contests both
While a legal tussle with its registration agency 16 months ago had led to a disruption in sales, as the company had to move the processes in-house, Mint could not independently verify whether the trouble with these suppliers would result in similar disruption at the product level.
Anevolve’s case was first heard in the tribunal on 6 April, with another hearing on 12 June, according to court filing details. The next date has been set for 27 July, as the company is seeking payment of its dues and interest on the unpaid amount. Sterling’s case was also filed in April, with the first hearing on 30 April. Both the petitions have been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, which covers corporate insolvency proceedings.
According to the filings, Ola Electric is contesting both pleas, with its own caveats. The company has not made an exchange filing on the case yet.
In March 2025, Rosmerta Digital Services Ltd. filed a similar petition after Ola Electric ended its commercial partnership with the business as it looked to move the registration process for its vehicles in-house. The case was settled out of court after Ola Electric agreed to pay all dues to the company.
“Filing such a case is an extreme step, as Ola Electric is a business opportunity after all. Both sides will tread carefully on this with some hope of a court-mediated path ahead,” the first person said.
Tough time for Ola Electric
The dispute with suppliers comes after a bruising financial year for Ola Electric as revenue fell 50% over the year-ago period to ₹2,253 crore in FY26. The firm's scooter and bike sales fell 44% to 173,794 units, even as losses narrowed to ₹1,833 crore from ₹2,276 crore in FY25.
The company fell to fifth place in the sales hierarchy, with Bajaj Auto, TVS Motor, Ather Energy and Hero MotoCorp all racing ahead as sales picked up. In recent months, the company has seen sequential growth in sales but continues to see year-on-year growth falling as rivals pick up pace.
Shares of Ola Electric closed 4.6% down on Monday as against 1.3% gain in Nifty Auto.
Experts suggest that suppliers taking a company to the insolvency court is a last resort measure.
"In my view, insolvency proceedings have increasingly become the remedy of last resort for suppliers who have exhausted conventional recovery mechanisms. While the Insolvency and Bankruptcy Code was never designed as a substitute for debt recovery, the reality is that persistent non-payment often leaves operational creditors with little practical choice," Sonam Chandwani, managing partner at KS Legal and Associates, said.
Others indicate that such suits become a key part of suppliers' attempts to get their dues.
"From the perspective of suppliers, insolvency proceedings often become a strategic option because conventional recovery mechanisms such as civil suits or arbitration proceedings can be time consuming and may not exert sufficient commercial pressure," Amit Kumar Nag, partner at AQUILAW, said.