Maharashtra govt issues notice to Ola Electric over missing trade certificates

IANS April 4, 2025 265 views

The Maharashtra government has escalated regulatory pressure on Ola Electric by issuing a formal notice questioning the legal status of its showrooms and service centers. The Transport Commissioner's Office has highlighted significant concerns about the company operating multiple outlets without required trade certificates. This development comes amid a broader investigation into Ola Electric's compliance with vehicle distribution regulations. The company now faces potential legal consequences if it fails to provide a satisfactory explanation within the specified three-day response window.

"This is a very serious matter" - Ravi Gaikwad, Joint Transport Commissioner
Maharashtra govt issues notice to Ola Electric over missing trade certificates
Pune, April 4: The Maharashtra government has issued a notice to Ola Electric Mobility Limited, asking the company to explain why some of its stores in the state are operating without valid trade certificates.

Key Points

1

Maharashtra govt demands explanation for operating without valid trade certificates

2

Ola Electric stores accused of illegal vehicle sales

3

Inspection reveals multiple regulatory violations

4

Three-day window given to respond to official notice

According to the notice from the Transport Commissioner’s Office, several Ola Electric showrooms and service centres in Maharashtra are being run without the required documents.

The notice also accuses the company of illegally selling vehicles through these unauthorised outlets.

As per a NDTV Profit report, the notice, dated March 31, gives the company three days to respond.

“This is a very serious matter, and you are requested to provide an explanation within three days as to why action should not be taken against your company for this act,” the notice said.

It was reportedly signed by Joint Transport Commissioner Ravi Gaikwad. However, as of now, Ola Electric has not responded officially on the issue.

The notice follows an earlier inspection drive initiated by the state transport authority.

On March 21, NDTV Profit had reported that Maharashtra’s Transport Commissioner had instructed all Regional Transport Offices (RTOs) to carry out special checks at Ola Electric stores.

These inspections reportedly revealed that many outlets were functioning without the necessary trade certificates.

As per the Central Motor Vehicles Act, 1988, and the Central Motor Vehicle Rules, 1989, every vehicle distributor or manufacturer must obtain a trade certificate to register and sell vehicles.

In addition, Rule 35 of the same law states that each showroom or dealership must have a separate certificate from the concerned registration authority.

The shares of the electric two-wheeler manufacturer closed lower by Rs 1.42 or 2.63 per cent to close the intra-day trade at Rs 52.62 on the National Stock Exchange (NSE).

Earlier this week, the company saw a sharp drop in its electric two-wheeler sales in March 2025, selling 23,430 units -- a steep 56 per cent decline compared to the same month last year.

The company said on April 1 that the fall was mainly due to disruptions caused by its recent shift to handling vehicle registrations in-house, a process that began in February.

Reader Comments

R
Rahul K.
This is concerning. I was planning to buy an Ola scooter next month, but now I'm having second thoughts. How can we trust a company that doesn't follow basic regulations? 😕
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Priya M.
As an Ola Electric owner, I'm disappointed but not surprised. Their service centers have always felt a bit unorganized. Hope they fix this soon!
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Amit S.
The sales drop explains everything. When companies focus more on expansion than compliance, customers suffer. Good that authorities are taking action.
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Sneha P.
While this is serious, let's not forget Ola's contribution to EV adoption in India. They should be given a chance to explain and rectify. Every startup faces compliance challenges.
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Vikram J.
I appreciate the government's proactive approach here. Consumer protection should always come first, especially in the EV sector which is still new for many buyers.
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Neha T.
The registration process change seems to have caused major issues. Maybe they bit off more than they could chew? Hope they sort this out soon 🤞
K
Karan D.
Respectful criticism - Ola needs better legal compliance teams. You can't build trust with customers if you're cutting corners on regulations. The EV revolution deserves better.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Ola Electric Maharashtra Transport Authority Electric Vehicles Regulatory Compliance Ravi Gaikwad Vehicle Sales Investigation
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