Ola Electric's shares slipped in trade after the Maharashtra government expanded its inspection of its stores. Officials from five regional transport offices have conducted inspections at as many as 26 Ola Electric stores of in Mumbai and Pune.
These checks were related to alleged violation of trade certification norms, people aware of the development said late Wednesday. A total of 36 Ola Electric scooters were confiscated.
The action was taken on the basis of a complaint filed by Pritpal Singh & Associates, Gurugram, which alleged Ola Electric “is setting up showrooms, stores and service centres in Maharashtra by obtaining a single trade certificate," according to an inspection report signed by deputy transport commissioner, Ravi Gaekwad.
According to the Central Motor Vehicles Act, 1988, and Rule 33 of Central Motor Vehicles Rules, 1989, it is necessary to obtain business authorisation certificate for the sale and distribution of vehicles. Additionally, as per Rule 35 of the Central Motor Vehicles Rules, 1989, every individual exhibitor, showroom, or vehicle display-related representative must obtain a trade certificate. Vehicles distributed by individuals or companies holding a trade certificate are considered eligible for exemption from registration under Section 39 of the Central Motor Vehicles Act, 1988.
NDTV Profit has seen a copy of the inspection report written in Marathi. An email sent to Ola Electric seeking a response on the matter remained unanswered at the time of publishing this story.
Ola Share Price
Ola Electric stock fell as much as 4.16% during the day to Rs 51.6 apiece on the NSE. It was trading 3.44% lower at Rs 52 apiece, compared to a 0.66% decline in the benchmark Nifty 50 as of 11:47 a.m.
It has risen 43.14% in the last 12 months. The total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 37.
Four out of eight analysts tracking the EV maker have a 'buy' rating on the stock, two recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 73.8, implying a upside of 42%.
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