Ola Electric faces more regulatory heat over lack of trade certificates

The Ministry of Road Transport and Highways (MoRTH) is preparing to issue a fourth letter to the company, demanding detailed information about its stores across India, including how many hold valid trade certificates and how many do not, revealed sources to CNBC-TV18.

The Ministry of Road Transport is also investigating discrepancies between Ola Electric’s vehicle registrations and actual sales figures, seeking further clarification from the company.

Additionally, the Ministry of Heavy Industries has enlisted four testing agencies to investigate multiple complaints filed against Ola Electric, adding another layer of scrutiny to the company’s operations.

The Maharashtra Transport Department recently ordered the closure of more than 100 Ola Electric stores statewide after inspections revealed widespread non-compliance. Of 131 showrooms checked, 107 were found to be operating without the required trade certificates.

To date, 43 stores have been shut down and 214 vehicles seized. Local Regional Transport Offices (RTOs) have been instructed to deactivate the login credentials of offending dealerships and report enforcement updates within 24 hours.

Under Indian law, dealerships must obtain trade certificates to legally sell vehicles or offer them for test drives. The Maharashtra Transport Department’s actions stem from reports of unlicensed sales activities at Ola Electric outlets.