Ola Electric in Problem, It Gets Notice from Maharashtra Government over Lack of Trade Certificate

There are difficulties for Ola Electric included in large electric two-wheeler companies. Last month, the company’s sales declined drastically. The Maharashtra government has given notice to Ola Electric for not having a trade certificate for some of its stores in the state. Last month, the company raided several stores in Maharashtra.

The notice states, “It has been found that your company is operating with unauthorized showrooms and stores and illegally selling vehicles. This is a very serious matter. It is a very serious matter. You are requested to provide a clarification about it within three days why action should not be taken against your company for this activity.” The notice was sent to the letterhead of the office of the Transport Commissioner of Maharashtra on 31 March. NDTV Profit Has seen a copy of it. The notice is signed by Joint Transport Commissioner, Ravi Gaikwad.

According to Rule 33 of the Central Motor Vehicle Act and Central Motor Vehicles, manufactures and distributors of vehicles need a business certificate for registration of vehicles. Rules 35 of the Central Motor Vehicle Rules states that a separate business certificate has to be taken from the sale of vehicles or the authority of every estabelization, showroom or dealership related to trade. If there is no trade certificate, then a penalty is imposed on the manufacturer and distributor of the vehicle under section 192 of the Motor Vehicle Act.

The sales of Ola Electric in March stood at around 23,430 units. This is a 56 percent decrease in sales on year-on-year basis. The company has been facing difficulties for the last several months. In February, the government has sought information from Ola Electric for not matching the sale and registration data of the company’s vehicles. Ola Electric had reported that it was sold around 25,000 vehicles in February. However, only about 8,600 registrations of the company’s vehicles were seen on a government portal. The company had said that it is a matter of temporary pending registration.