Pune RTO Takes Action Against Ola Electric Stores; 36 E-Scooters Confiscated
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Synopsis
The Maharashtra government is intensifying its investigation into Ola Electric stores for alleged trade violations, impacting the operations of the Bhavish Aggarwal-led EV manufacturer. Recent inspections in Mumbai and Pune led to the confiscation of 36 e-scooters and raised concerns over compliance with trade regulations.
Key Takeaways
- The Maharashtra government has intensified scrutiny of Ola Electric stores.
- 36 Ola Electric scooters have been seized during inspections.
- Allegations include using a single trade certificate for multiple locations.
- Legal compliance under the Central Motor Vehicles Act is being enforced.
- Ola Electric faces financial challenges and legal scrutiny regarding sales figures.
Mumbai, March 20 (NationPress) The Maharashtra government has heightened its examination of Ola Electric stores due to alleged trade infractions, compounding the difficulties encountered by the electric vehicle (EV) manufacturer led by Bhavish Aggarwal.
Officials from five regional transport offices scrutinized 26 Ola Electric stores across Mumbai and Pune to verify compliance with trade certificate regulations. This inspection led to the confiscation of 36 Ola Electric scooters.
According to a report by NDTV Profit, by Tuesday, inspections had been conducted at 10 Ola Electric stores in Mumbai, resulting in 10 scooters being impounded.
The recent enforcement action taken on Wednesday followed a complaint lodged by Pritpal Singh and Associates, a firm based in Gurugram.
The complaint alleged that Ola Electric was unlawfully establishing showrooms, stores, and service centers in Maharashtra under a single trade certificate, which violates legal stipulations.
An inspection report, endorsed by Deputy Transport Commissioner Ravi Gaekwad, corroborated these allegations, as per the report.
Maharashtra’s Transport Minister, Pratap Sarnaik, has called for prompt action regarding the complaint and requested a detailed report. Inspections were carried out by officials from four Mumbai RTOs and one Pune RTO.
In accordance with the Central Motor Vehicles Act, 1988, and Rule 33 of the Central Motor Vehicles Rules, 1989, vehicle distributors and manufacturers are required to secure a business certificate for vehicle registration.
Moreover, Rule 35 stipulates that each showroom, dealership, or establishment involved in the selling or displaying of vehicles must possess an individual business certificate.
Non-compliance with these regulations may incur penalties under Section 192 of the Motor Vehicles Act, 1988. This crackdown occurs while Ola Electric is already grappling with financial and legal challenges.
Last week, vendors Rosmerta Digital Services Private Ltd and Rosmerta Safety Systems Private Ltd initiated insolvency proceedings against an Ola Electric subsidiary over outstanding debts totaling approximately Rs 25 crore.
These vendors were responsible for handling vehicle registrations and producing high-security number plates for Ola Electric scooters.
However, the company has only notified stock exchanges about a single petition filed with the National Company Law Tribunal (NCLT) in Bengaluru.
Ola Electric is facing further scrutiny concerning its claimed sales figures. In February, the company asserted it had sold 25,000 scooters, yet registration data indicates that only around one-third were actually registered.
