Winning Bizness Desk

Mumbai. In a major regulatory move, Maharashtra’s Transport Department has ordered the closure of 121 Ola Electric stores across the state for operating without valid trade certificates. The order follows an extensive investigation into 146 Ola showrooms, which revealed that over 121 were functioning without the necessary permissions under the Motor Vehicles Act. Local Regional Transport Offices (RTOs) have been directed to implement the closures immediately.

Multiple Raids and Seizures Across States

This crackdown comes on the heels of a statewide raid last month in which the RTO seized 192 electric vehicles from Ola stores in Maharashtra that lacked valid trade certifications. Show-cause notices were also issued to the operators. These raids are part of a nationwide regulatory sweep, with similar actions taken in Madhya Pradesh and Rajasthan. So far, over 32 Ola showrooms have been raided across Maharashtra and Madhya Pradesh, with more than 50 vehicles seized in various locations.

Repeat Raids and Lack of Certification

Ola showrooms have come under the scanner repeatedly. On March 8, raids were conducted across several Ola outlets nationwide, leading to the sealing of multiple stores and vehicle seizures. On March 12, the RTO raided two stores in Jabalpur, Madhya Pradesh, and confiscated 14 electric vehicles. Another raid followed on March 18 in Indore, resulting in notices being issued. Between March 17 and 19, raids were carried out at 26 stores in Mumbai and Pune, leading to the seizure of 36 vehicles.

Complaint by Rival Firm Triggers Crackdown

The trigger for the action was a formal complaint by Pratap Singh & Associates, a Gurugram-based firm, which alleged that Ola Electric and other companies were operating without the required trade certifications. Acting on the complaint, Maharashtra transport authorities launched targeted inspections and enforcement operations. The findings revealed that a staggering 95% of Ola’s stores lacked the basic authorizations required to display, sell, or offer test rides for electric two-wheelers.

Ola Denies Violations, Terms Action Biased

Reacting to the raids, Ola Electric has denied any wrongdoing and termed the enforcement actions as biased and unjustified. A company spokesperson claimed that no vehicles were actually seized and that Ola’s warehouses and distribution centers in multiple states maintain inventories that comply fully with the Motor Vehicles Act. The company further maintained that it possesses all required approvals and certifications, though it had not publicly addressed specific raid incidents or compliance gaps at individual outlets.

Key Points:

1. Maharashtra's Transport Department to shut down 121 Ola Electric stores for lacking trade certificates.

2. Inspections covered 146 stores; over 80% found operating without valid documentation.

3. RTO seized 192 electric vehicles and issued notices during recent raids in Maharashtra.

4. Raids also conducted in Madhya Pradesh and Rajasthan, with over 50 vehicles seized overall.

5. Complaint by Gurugram-based Pratap Singh & Associates prompted the nationwide crackdown.

6. Reports indicate 95% of Ola's 4,000 stores lack basic legal certifications to sell/display EVs.

7. Ola denies all charges, calls raids biased, and insists all necessary approvals are in place.