Electric two-wheeler manufacturing company Ola is once again in controversy. This time the Union Transport Ministry has issued a show-cause notice to Ola. The ministry has sought answers to many important questions within 7 days. If Ola does not respond on time, legal action can also be taken against it. After the notice, Ola’s stock closed at Rs 49.72 on Friday with a decline of 5.13%. Along with this, Ola clarified on the instructions to take action on 121 stores in Maharashtra three days ago. Ola has said that we have not received any notice regarding closure of showrooms in Maharashtra. We had already informed the exchange about the trade certificate notice of 4 states on 21 March 2025. Answers to these questions were sought from Ola in the notice. On April 22, instructions were given to take action on 121 stores in Maharashtra. Three days ago, the Transport Department in Maharashtra has given instructions to close 121 stores of Ola. The Transport Department had inspected 146 Ola stores, out of which more than 121 stores were running without trade certificate. In fact, last month RTO raided many Ola stores in Maharashtra. 192 vehicles were seized and show cause notices were issued due to lack of trade certificate at the stores. Ola Electric’s share fell more than 35% in 6 months On Friday, Ola Electric’s share closed at Rs 49.72 with a fall of 5.13%. Ola’s share has fallen more than 8% in a month. At the same time, the share has fallen more than 45% in the last one year. Ola’s market capital is Rs 22.14 thousand crores. Ola’s stores were raided 4 times RTO action was taken on Ola stores across the country. So far, 32 stores in Maharashtra and Madhya Pradesh have been raided. Apart from this, action has also been taken on some stores in Rajasthan. More than 50 electric vehicles have been seized in this. Action after complaint from other companies Gurugram’s Pratap Singh & Associates Company had filed a complaint against Ola Electric and some other companies for not having a trade certificate. After the complaint, Maharashtra transport officials took action. 95% of the stores do not have basic certification Ola Electric has opened 4,000 stores since 2022. According to the Economic Times report, data of only about 3,400 of these showrooms is available. Out of 3,400, only 100 showrooms had the required trade certificates under the Motor Vehicles Act. More than 95% of the company’s stores do not have the basic certification required to display, sell and offer test rides of unregistered two-wheelers. Ola Electric said – Raid action is wrong and biased On the raid action, a spokesperson for Ola Electric had said that no vehicle has been seized. Earlier, Ola had described the investigation as wrong and biased. The spokesperson had said that Ola has an inventory of unregistered vehicles in its distribution centers and warehouses in several states. It fully complies with the guidelines of the Motor Vehicles Act and has the necessary approvals in place. The company did not provide any information regarding the raids on the stores.
