Ola Electric’s promoter entity ANI Technologies is under the scanner of Enforcement Directorate (ED) in connection with a copyright infringement case involving the music company Lahari.
The development came to light in the draft red herring prospectus (DRHP) filed by Ola Electric with the market regulator SEBI. ANI Technologies is the parent of Ola Cabs.
As per information shared in the DRHP, the music company had filed an FIR against ANI Technologies and one Ankit Bhatti for playing songs on the ‘Ola Play’ devices without a valid license. However, the two companies eventually entered into an agreement in August 2022 to settle the matter.
Subsequently, ANI Technologies filed a joint application with Lahari as well as a petition under Section 482 of the Code of Criminal Procedure, 1973 before the Karnataka High Court (HC) to quash the FIR. The matter is currently pending before the HC.
However, the matter brought ED sleuths to the company’s doorsteps. The agency, in early December 2023, issued summons to Ola Electric’s promoter entity (ANI Technologies) under provisions of the PMLA, 2002, seeking information and documents pertaining to copyright licenses owned by ANI.
As per the IPO papers, the ED also sought details of settlement made by the company with Lahari in connection with the FIR.
Eventually, the company submitted the information to the Directorate in a reply on December 13. Almost a week later, the agency issued another summons seeking information pertaining to movable and immovable properties in the name of ANI and the ongoing disputes between the two parties.
As per latest information, ANI is in the process of furnishing a reply to the data sought by the Directorate in compliance with the summons.
Apart from this, Ola Electric has been dragged to consumer grievance redressal commissions in connection with as many as 169 cases filed by its users. These cases span non-delivery of EVs, defective deliveries, cancellation of purchase orders, improper servicing, among others.
Aggrieved customers have sought damages to the tune of INR 4.47 Cr from the EV maker.
“… there are 189 such matters against us involving an aggregate amount of INR 44.77 Mn, to the extent quantifiable. These matters are presently pending at various stages of adjudication,” added the DRHP.
The original equipment manufacturer’s (OEM’s) non-executive director, Krishnamurthy Venugopala Tenneti, is also in dock for allegedly dishonouring cheques, amounting to INR 1.04 Cr, issued by him in his capacity as a non-executive director of a different company.
The revelations are part of Ola Electric’s much awaited DRHP which sets the stage for the company’s public listing. The IPO comprises a fresh issue of INR 5,500 Cr and on offer for sale (OFS) component of 9.51 Cr shares.
Founder and CEO Bhavish Aggarwal will offload 4.7 Cr shares in the OFS, accounting for half of the total. On the other hand, names such as SoftBank, Tiger Global Alpha Wave Ventures have also lined up to pare their shareholding in the company.
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