Synopsis
The Ministry of Road Transport and Highways has sent a new show-cause notice to Ola Electric, requiring an explanation for discrepancies in their February sales figures. The company claimed sales of 25,000 scooters, but only 8,652 were registered, leading to scrutiny from the Maharashtra government.Key Takeaways
- Ministry of Road Transport and Highways issued a notice to Ola Electric.
- Ola Electric reported 25,000 scooter sales in February.
- Only 8,652 scooters were registered due to vendor contract issues.
- Rosmerta Group filed insolvency petitions against Ola Electric.
- Maharashtra government inspected Ola Electric stores for compliance.
New Delhi, March 29 (NationPress) The Ministry of Road Transport and Highways has issued a new show-cause notice to Ola Electric Mobility, demanding clarification regarding discrepancies in its sales figures from February.
Dated March 21, the notice requests information about the number of Ola scooters of various models that were sold and registered during the previous month, as reported by NDTV Profit.
The company, led by Bhavish Aggarwal, must clarify whether the scooters sold in February are currently on the roads without proper registrations, if scooters were delivered to customers lacking number plates, and whether sales are occurring from stores without the necessary trade certificates.
It remains unclear if the company has replied to the ministry's notice within the specified seven-day period.
Ola Electric stated it sold 25,000 scooters in February; however, only 8,652 were registered due to contract renegotiations with the vendors responsible for vehicle registrations.
The vendors, Rosmerta Group, have since filed insolvency petitions against Ola Electric for unpaid debts amounting to approximately Rs 25 crore.
Ola Electric asserted that it has “amicably resolved all pending dues with its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group has submitted a memo to withdraw the petitions filed with the National Company Law Tribunal (NCLT), Bengaluru.
On Friday, shares of Ola Electric dropped 3.81 percent, trading at Rs 52.97 on the BSE.
Additionally, last week, the Maharashtra government escalated its examination of Ola Electric outlets due to suspected trade infractions. Officials from five regional transport offices inspected 26 Ola Electric stores in Mumbai and Pune for trade certificates, resulting in the confiscation of 36 scooters.
Maharashtra’s Transport Minister, Pratap Sarnaik, has demanded prompt action regarding the complaint and requested a report on the situation. Inspections were conducted by officials from four RTOs in Mumbai and one in Pune.
