EV brands like Ola, Ather are making progress, while this company has gone bankrupt
Ola Electric brought its IPO last year and now Ather Energy is also trying to bring its IPO soon. These new electric 2-wheeler companies are growing rapidly. While Bajaj Chetak of a traditional 2-wheeler company like Bajaj Auto is the best-selling electric scooter in the country. In such a situation, one of the oldest electric 2-wheeler companies in the country, 'Hero Electric' has gone bankrupt. What is the whole matter?
The National Company Law Tribunal (NCLT) has ordered to start insolvency proceedings against Hero Electric. This order has come on a petition filed by Metro Tyres.
could not pay 1.85 crore
According to Autocar India, Hero Electric owes Metro Tyres Rs 1.85 crore. Metro Tyres had filed a petition in the Delhi branch of NCLT for not paying the amount, after which an order has been given to start the insolvency process against it.
According to PTI news, NCLT has suspended the board of directors of Hero Electric. Bhupesh Gupta has been appointed as interim resolution professional. For now, Bhupesh Gupta will look after the company's work and will be responsible for completing its bankruptcy process.
Tyres were of poor quality
Hero Electric had purchased tyres and tubes worth a total of Rs 3.69 crore from Metro Tyres during August-December 2022. Out of this, Rs 1.85 crore is still outstanding. Metro Tyres says that despite repeated reminders and notices, the company has not paid its dues.
Regarding stopping the payment, Hero Electric claims that it has stopped the payment of Metro Tyres due to poor quality. The company's tyres had problems like separation of tread, bubbles, air leakage etc.
However, NCLT rejected Hero Electric's argument. NCLT said that the company did not complain about the quality of the tyres while taking delivery or in the months thereafter. Therefore, its claim of poor quality has no merit.
Hero Electric is one of the first companies in the country to launch electric 2-wheelers in India. This is the company of the Munjal family, which owns Hero MotoCorp.