Synopsis
The Maharashtra government has served notice to Ola Electric Mobility Limited, seeking an explanation for the operation of its stores without valid trade certificates, highlighting serious legal concerns and possible unauthorized vehicle sales.Key Takeaways
- The Maharashtra government has issued a notice to Ola Electric.
- Stores are operating without valid trade certificates.
- Illegal vehicle sales are alleged through unauthorized outlets.
- The company must respond within three days.
- Inspections revealed many outlets lack necessary documentation.
Pune, April 4 (NationPress) The government of Maharashtra has issued a notice to Ola Electric Mobility Limited, requesting the company to clarify why certain stores within the state are operating without the necessary trade certificates.
The notice from the Transport Commissioner’s Office indicates that multiple Ola Electric showrooms and service centers in Maharashtra are functioning without the required documentation.
Additionally, the notice claims that the company is unlawfully selling vehicles through these unauthorized outlets.
According to a report by NDTV Profit, the notice, dated March 31, mandates the company to respond within three days.
“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 states.
It is reported to have been signed by Joint Transport Commissioner Ravi Gaikwad. However, there has been no official response from Ola Electric as of now.
The notice follows a previous inspection initiative launched by the state transport authority.
On March 21, NDTV Profit reported that the Transport Commissioner of Maharashtra had directed all Regional Transport Offices (RTOs) to conduct special checks at Ola Electric stores.
These inspections reportedly uncovered that several outlets were operating without the essential trade certificates.
Under the Central Motor Vehicles Act, 1988, and the Central Motor Vehicle Rules, 1989, every vehicle distributor or manufacturer must secure a trade certificate to register and sell vehicles.
Furthermore, Rule 35 of the same legislation specifies that each showroom or dealership must possess a distinct certificate from the relevant registration authority.
The shares of the electric two-wheeler manufacturer fell by Rs 1.42 or 2.63 percent, closing at Rs 52.62 during intra-day trading on the National Stock Exchange (NSE).
This week, the company experienced a significant drop in electric two-wheeler sales in March 2025, selling 23,430 units—a dramatic 56 percent decrease compared to the same month the previous year.
The company announced on April 1 that this decline was primarily due to disruptions linked to its recent transition to managing vehicle registrations internally, a process that commenced in February.
