Ola Electric Mobility Ltd.’s ongoing troubles have escalated with new raids on its stores in Madhya Pradesh, further intensifying scrutiny on the company. At least six Ola Electric stores—two in Jabalpur and four in Indore—were raided on March 12 and March 18, respectively. As per the sources “experience centres” were found selling electric scooters without the necessary trade certificates.
As a result of these raids, authorities impounded at least 14 scooters in Jabalpur, though no scooters were seized in Indore. The stores have now been issued a three-day notice to clarify the situation and explain the lack of required certification. This is the latest in a series of inspections following similar raids in Maharashtra, where authorities have been cracking down on Ola Electric for its alleged failure to comply with regulatory requirements.
Over the past week, officials from five regional transport offices (RTOs) inspected 26 Ola Electric stores across Mumbai and Pune. These inspections were focused on ensuring that the company’s outlets had proper trade certificates. During the inspections, some stores were found to be operating without trade certificates, while others were discovered to be sharing a single certificate among multiple locations.
Under the Central Motor Vehicles Act, 1988, and related rules, manufacturers and distributors must obtain a valid business certificate for each vehicle retail establishment. Without these certificates, the company is subject to penalties under Section 192 of the Motor Vehicles Act, 1988.
This crackdown on Ola Electric’s operations comes amid a challenging period for the company, once India’s largest electric two-wheeler manufacturer. Sales have slumped, and just last week, two of Ola Electric’s vendors, Rosmerta Digital Services Pvt. and Rosmerta Safety Systems Pvt., sought insolvency proceedings against a subsidiary over unpaid dues amounting to around Rs 25 crore.
Earlier this year, RTO raids in Maharashtra led to the seizure of 36 Ola scooters from stores in Mumbai and Pune, further compounding the company’s regulatory woes.
