Transport Ministry Questions Ola Electric Regarding Missing Trade Certificates, Company Responds
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Synopsis
The Union Ministry of Road Transport and Highways has issued a notice to Ola Electric regarding missing trade certificates, prompting the company to respond with clarifications about its operations and compliance with regulations.
Key Takeaways
- Ola Electric received a show-cause notice from the Ministry.
- The company must provide details on stores and trade certificates.
- Clarification on unregistered vehicles is also required.
- Response deadline is set for seven days.
- Ola Electric denies any closure orders for its showrooms.
New Delhi, April 25 (NationPress) The Union Ministry of Road Transport and Highways has served a show-cause notice to Ola Electric Mobility Limited concerning the absence of trade certificates.
In the notice dated April 24, the ministry requested Bhavish Aggarwal-led Ola Electric to furnish comprehensive details about the number of stores and service centres it operates, along with the count of trade certificates obtained over the past three years, inclusive of their issuance dates, as reported by media.
The firm has also been instructed to clarify if it is housing unregistered vehicles at its centres, according to a report from NDTV Profit.
The ministry additionally sought model-wise and variant-wise data for the 7,820 electric scooters that Ola Electric claimed to have delivered in February of this year.
The company has been given a deadline of seven days to respond to the notice to prevent any unfavorable actions.
In its reply, Ola Electric stated that it had already shared the necessary information with the stock exchanges and refuted claims of receiving an order to close over 100 of its showrooms in Maharashtra.
The company clarified this in a filing to the National Stock Exchange (NSE) on Friday, in reaction to a media report regarding enforcement measures by the Maharashtra Transport Department.
“We are unaware of any negotiations or incidents concerning a notice from the authorities mandating the immediate closure of over 100 showrooms in Maharashtra,” the company asserted in its NSE filing.
Ola Electric also mentioned that it had previously informed exchanges on March 21 about notices received from four states regarding trade certificates at specific outlets.
It emphasized that all necessary disclosures have been made in compliance with SEBI regulations, and there is no undisclosed information that could explain recent fluctuations in its stock price.
“This article does not materially impact the company,” Ola Electric concluded.
According to Indian law, dealerships are required to possess a valid trade certificate to sell vehicles or even conduct test drives.
At approximately 1:45 pm, Ola Electric shares had declined nearly 4 percent to Rs 50.39 on the NSE.
