Ola Electric Mobility Ltd. has received a fresh showcause notice from India's transport ministry to explain the mismatch in sales recorded in February.
The EV maker has now been asked to respond to
whether Ola scooters sold February are on the road without registrations
whether Ola scooters were delivered to customers without number plates
whether Ola scooters are being sold from stores without trade certificates
Additionally, the Union Ministry of Road Transport and Highways has sought details of Ola scooters of various models sold and registered in February.
The showcause notice, a copy of which was seen by NDTV Profit, was issued on 21 March. Ola Electric had seven days to respond to it. However, it's not known if the company has responded yet. NDTV Profit has written to Ola Electric for a comment on the matter. This story will be updated with a response if and when received.
Ola Electric, which until November last year was India's largest electric two-wheeler maker, claimed to have sold 25,000 scooters in February but only 8,652 of them were registered due to renegotiation of contracts with vendors that handled vehicle registrations. The process was moved in-house to save costs.
The vendors, Rosmerta Group, subsequently filed insolvency petitions against the company led by founder billionaire Bhavish Aggarwal over unpaid dues of up to Rs 25 crore. Those are now withdrawn after Ola Electric paid up.
Additionally, Ola Electric stores across India are being raided for lack of trade certificates—a necessary document for distribution, sales and display of vehicles in India. Several scooters have been impounded from such locations.
On Friday, Ola Electric shares fell 3.81% to Rs 52.97 apiece on the BSE even as the benchmark Sensex ended the day 0.25% lower at 77,414.92 points.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
