Daijiworld Media Network – Mumbai
Mumbai, Apr 4: The Maharashtra government has issued a stern notice to Ola Electric Mobility Limited, questioning the legality of several of its stores operating without valid trade certificates in the state.
The notice, sent by the Transport Commissioner’s Office and reportedly signed by joint transport commissioner Ravi Gaikwad, alleges that multiple Ola Electric showrooms and service centres across Maharashtra are functioning without the mandatory documentation. It further accuses the company of selling vehicles through these unregistered outlets.
Labeling the matter as serious, the department has given Ola Electric three days to explain why action should not be taken against it. “This is a very serious matter, and you are requested to provide an explanation within three days,” the notice stated, according to a report by NDTV Profit.
The development follows an earlier inspection drive initiated by the Transport Commissioner. On March 21, all Regional Transport Offices (RTOs) in the state were directed to conduct special checks at Ola Electric facilities. The inspections revealed that several outlets lacked the trade certificates required under the Central Motor Vehicles Act, 1988, and the Central Motor Vehicle Rules, 1989.
According to Rule 35 of the legislation, each showroom or dealership must possess a separate certificate from the relevant registration authority to legally operate and sell vehicles.
As of now, Ola Electric has not issued an official response to the notice.
The controversy comes amid other challenges for the company. Earlier this week, Ola Electric reported a sharp 56 per cent year-on-year drop in sales for March 2025, with only 23,430 electric two-wheelers sold. The company attributed the decline to disruptions caused by its new in-house vehicle registration process, which started in February.
The news also impacted the company’s market performance. Ola Electric’s shares closed lower by Rs 1.42 or 2.63 per cent, settling at Rs 52.62 on the National Stock Exchange (NSE) during intra-day trading.