Winning Bizness Desk
Mumbai. Regional Transport Office (RTO) officials conducted raids at multiple Ola Electric stores in Maharashtra and Madhya Pradesh, leading to the seizure of over 50 electric vehicles. The crackdown comes amid allegations that the company has been selling electric two-wheelers without the required trade certification. In Madhya Pradesh, authorities raided six Ola stores—two in Jabalpur and four in Indore—seizing 14 electric vehicles. Notices were also issued to these stores for operating without proper certification.
Nationwide Crackdown on Ola Stores
Ola Electric stores across the country have faced similar RTO actions. So far, raids have been conducted at 32 Ola stores in Maharashtra and Madhya Pradesh, with additional inspections carried out in Rajasthan. Authorities claim that most of these stores were operating without proper trade certificates under the Motor Vehicles Act. In Maharashtra, a large-scale operation between March 17 and 19 led to raids at 26 Ola stores, resulting in the seizure of 36 vehicles and the issuance of multiple notices.Stock Price Takes a Hit
Following the news of the raids, Ola Electric’s stock fell by 4.18% on Thursday, closing at ₹51.60 after a ₹2.25 drop. The company’s shares have been under pressure for a while, plummeting over 16% in the past month and over 50% in the last six months. Earlier, on March 17, Ola Electric’s stock had already fallen by nearly 8% due to a bankruptcy petition filed against one of its subsidiaries, further shaking investor confidence.Widespread Regulatory Issues
Reports indicate that 95% of Ola Electric’s stores lack the basic certification required to sell and test-ride vehicles legally. Out of the 4,000 stores Ola has opened since 2022, data is available for only 3,400, and of these, only 100 had the necessary trade certificates. The crackdown began after complaints from other companies, including Pratap Singh & Associates in Gurugram, which alleged that Ola and several other firms were violating trade regulations.Ola Denies Allegations, Calls Action Biased
Ola Electric has strongly refuted the allegations, calling the RTO action unfair and biased. The company stated that no vehicles were seized and that its inventory of unregistered vehicles complies with all guidelines under the Motor Vehicles Act. Ola also dismissed claims of financial irregularities, saying it is taking legal advice to challenge the allegations. Despite the company’s defense, regulatory scrutiny continues to mount, affecting its market standing and investor confidence.Timeline of the Development
March 8: Raids conducted at multiple Ola stores across India; several stores sealed, and electric vehicles seized.
March 12: RTO officials raided two stores in Jabalpur, MP, seizing 14 electric vehicles.
March 17: Large-scale raids in Maharashtra, including Mumbai and Pune; 26 stores inspected, 36 vehicles seized.
March 18: Four Ola stores in Indore were raided; notices issued for operating without trade certification.
March 19: Ola’s stock dropped by 8% following a bankruptcy petition filed by Rosmerta Digital against its subsidiary.
March 21: Stock falls 4.18% as regulatory action continues, raising concerns among investors.
