The Maharashtra government has told regional transport offices to shut Ola Electric stores operating without a trade certificate, widening its crackdown on the Bengaluru-based EV maker.
If a store or service centre of Ola Electric Mobility Ltd. is operational under an RTO without a trade certificate, “action should be taken to close that centre and original trade certificate should be cancelled,” Maharashtra's joint transport commissioner said in a show cause notice to RTOs in an email dated 16 April 2025.
The RTOs had one day to act and report the closures.
NDTV Profit has seen a copy of the email sent to RTOs.
“Your claims regarding our stores in Maharashtra are speculative, incorrect and misplaced,” an Ola Electric spokesperson said in an emailed response to NDTV Profit's query Monday. “We continue to work closely with the concerned authorities in Maharashtra to address any specific queries or concerns.”
According to Section 39 of the Central Motor Vehicles Act, 1988, and Rule 33 of the Central Motor Vehicle Rules, 1989, vehicle distributors and manufacturers are required to obtain a business certificate to register vehicles.
Rule 35 of the Central Motor Vehicle Rules, 1989, states that every specific establishment, showroom or dealership involved in the sale, trade, or exhibition of vehicles must obtain an independent business certificate from the concerned registration authority.
Ongoing Operation
Ola Electric's troubles in Maharashtra first started in early March, when the RTOs in Mumbai and Pune inspected stores for trade certificates. Several of these “experience centres” were found to be operating without one or sharing one among themselves, Transport Minister Pratap Sarnaik told NDTV Profit on 5 April.
Then, on 31 March, the Maharashtra transport department served a notice to the electric two-wheeler firm to explain the lack of the crucial document. In reply, the billionaire Bhavish Aggarwal-led firm said that it's now in the process of applying for trade certificates for all of its stores in the state.
Still, the company's stores continue to face inspections.
Maharashtra's RTOs have so far inspected 146 Ola Electric stores in the state, according to the Google Sheet attached with the 16 April show cause notice. Of them, 121 were found to be operating without a trade certificate and 75 of them have been shut so far. A total of 192 scooters have been seized since the inspections started last month.
On Monday, Ola Electric shares rose 5.25% to Rs 52.88 apiece on the BSE even as the benchmark Sensex ended the day 1.09% higher at 79,408.50 points.
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