Market Mix - What’s Ola Hiding?

March 19, 2025 | Listen Online | Read Online

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Good morning. Ola Electric, India’s leading two-wheeler manufacturer, seems to be in big trouble. Its largest vehicle registration partner has filed two insolvency petitions against its subsidiary and looks like Ola may have suppressed some information from its investors.

In other news, even big companies such as Hindustan Aeronautics Limited (HAL) are falling for cyber fraud. Meanwhile, Mumbai airport plans tariff hikes that could make flying out of the city more expensive.

DECODE THE NEWS

Ola Electric’s Vendor Insolvency Case Raises Governance Questions For Investors

Electric two-wheeler maker Ola Electric is facing a major legal and financial crisis as Rosmerta Digital Services and Rosmerta Safety Systems, two of its largest vehicle registration partners, have filed two insolvency petitions against its subsidiary, Ola Electric Technologies Pvt. Ltd. The dispute, over unpaid dues, has reached the National Company Law Tribunal (NCLT), putting Ola in the crosshairs of regulators and investors.

The NCLT case is significant, not only because it involves critical operational partners, but also due to how Ola Electric initially disclosed its relationship with Rosmerta.

In February 2025, Ola Electric, in a filing to stock exchanges, announced that it was renegotiating contracts with its vehicle registration agencies, including Rosmerta Digital Services and Shimnit India, stating that the process would lead to a temporary dip in vehicle registrations on the government’s VAHAN portal. However, the company did not mention any pending dues or financial disputes with Rosmerta at the time.

Now, with Rosmerta pursuing insolvency proceedings over non-payment, legal experts believe Ola may have withheld material information from investors. According to Bloomberg, Rosmerta is seeking to clear outstanding dues of Rs 24.5 crore in payments.

As a listed company, Ola Electric is subject to strict financial disclosure norms under Securities and Exchange Board of India (SEBI) regulations. Legal experts said Ola’s February disclosure did not sufficiently cover its financial obligations to key vendors — a potential violation of SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations.

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CORE NUMBER

Rs 55 lakh

This is the amount Hindustan Aeronautics Limited (HAL) lost to a sophisticated cyber fraud, Mint reported. Scammers impersonated US-based PS Engineering Inc., tricking the state-owned aerospace giant into wiring funds to fraudulent accounts. The hackers subtly altered the official email ID — removing just one letter (‘e’) — and manipulated bank details to reroute payments. HAL only realised the deception when the real PS Engineering flagged the missing transaction. Authorities are now investigating whether the fraud originated in India or overseas. This breach raises major concerns about cybersecurity in high-stakes defence procurement deals.

FROM THE PERIPHERY

—🕵️ Big ad firms busted! The Competition Commission of India has raided top global ad firms — GroupM, Dentsu, and Interpublic Group — along with a broadcasters’ group over alleged price collusion, The Economic Times reported. Around 10 locations in Mumbai, Delhi and Gurugram were searched as authorities investigated ad rate fixing. The Indian Broadcasting and Digital Foundation, representing major players like Reliance-Disney, Sony and Zee, was also targeted. The Competition Commission and the firms involved have stayed silent.

—✈️ Where are the planes? Air India CEO Campbell Wilson says the global aircraft shortage will last another four to five years due to delays at Boeing and Airbus, The Economic Times reported. With 570 planes on order, Air India is forced to keep older jets flying, raising costs and slowing expansion. Leasing planes isn’t easy either. On Boeing’s delayed 777X, Wilson simply said, “Who knows?” Until deliveries pick up, the airline must be smart about where it deploys aircraft to get the best returns.

—✈️ Fees climbing everywhere, seriously? After a tariff hike proposal at Delhi's Indira Gandhi International Airport (IGIA), Mumbai's Chhatrapati Shivaji Maharaj International Airport (CSMIA) follows suit. Mumbai International Airport Limited (MIAL) has introduced a new User Development Fee (UDF) structure, proposing charges of Rs 325 for domestic and Rs 650 for international departures. This move is part of a so-called strategy to improve infrastructure and amenities, but it's hard to ignore that it comes at the expense of passengers. Meanwhile, the proposal also seeks to reduce landing and parking fees by 35%, benefiting airlines.

—⭐ Starlink’s Star Entry In an interview on Tuesday, telecom minister Jyotiaditya Scindia said that India’s rural areas need satellite internet to achieve comprehensive connectivity, according to a report by The Economic Times. Last week, Starlink announced a partnership with Reliance’s Jio and Bharti’s Airtel, which surprised consumers since the three companies were previously competing to bring satellite internet into the country. Scindia’s positive words about satellite connectivity for rural India could be a positive signal for Starlink, which is still waiting for official approval and licenses from the Indian government.

UGHH

Green Card Under Threat!

US president Donald Trump’s ‘America First’ policies are now targeting green card holders too. An India Today report mentioned that recently, border officials strip-searched and “violently interrogated” Fabian Schmidt, a German green card holder. As well, elderly Indian citizens with green cards said that airport authorities have been grilling them more than usual, and have even coerced them to voluntarily surrender their permanent residency. Indians form the largest cohort among green card holders, with over one million Indians currently in line to obtain their permanent residency.

This is the latest in Trump’s actions against immigrants, legal and illegal. Not only has Trump’s administration deported illegal immigrants, but the deportation of a green card holder has triggered concerns. Mahmoud Khalil, a Palestinian activist, faces deportation for his anti-government protests. Vice president JD Vance has also made the American administration’s stance clear by saying, “A green card holder doesn't have an indefinite right to be in the United States.”

PODCAST

On Episode 534 of The Core Report, financial journalist Govindraj Ethiraj talks to Ambareesh Baliga, Veteran Market Expert as well as Safi Ahsan Rizvi, Advisor at the National Disaster Management Authority (NDMA).

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