Ola, a manufacturer of electric two-wheelers, has once more come under fire. This time, Ola has received a show-cause notice from the Union Transport Ministry. 



Within seven days, the ministry has sought responses to a number of crucial questions. Legal action may also be taken against Ola if it does not respond within the allotted time.

 After the notice, Ola's stock closed down 5.13% at Rs 49.72 on Friday.  Along with this, Ola clarified on the instructions to take action against 121 stores in Maharashtra three days ago. 

 According to Ola, we have not received any notice regarding the Maharashtra showroom closure.

 On March 21, 2025, we had already informed the exchange of the trade certificate notice from four states. Ola was asked to respond to these inquiries in the notice. 

Information regarding sales-service centers: Ola must disclose the number of its nationwide sales-service centers, as well as the dates of any trade certificates issued within the previous three years.

Information on sales in February:

Ola must also provide model- and variant-specific information on 7,820 electric scooters sold in February. Vehicles without registration: The ministry has inquired as to the number of vehicles that are still kept at Ola centers without registration. 

On April 22, authorities in Maharashtra were given instructions to take action against 121 stores. Three days ago, the Transport Department in Maharashtra has given instructions to close 121 stores of Ola.  Out of Ola's 146 stores inspected by the Transport Department, more than 121 were operating without a trade certificate. In fact, the RTO carried out a raid on a number of Ola stores in Maharashtra last month, seizing 192 vehicles and issuing show cause notices for the stores' lack of trade certificates.

Ola Electric's stock fell more than 35% in 6 months

 On Friday, Ola Electric's stock closed at Rs 49.72 with a fall of 5.13%.  Ola's stock has fallen more than 8% in a month.  At the same time, the stock has fallen more than 45% in the last one year.  Ola's market capital is Rs 22.14 thousand crores.

 There were four raids on Ola's stores. RTO action was taken on Ola's stores across the country.  So far, 32 stores in Maharashtra and Madhya Pradesh have been raided.  In addition, Rajasthan has taken action against a few stores. More than 50 electric vehicles have been seized in this.

 March 8 - Raids were conducted on many Ola stores across the country.  Many stores were sealed due to lack of trade certificate, electric vehicles were seized.

 On March 12, the RTO carried out a raid on two stores in Jabalpur, Madhya Pradesh. During this period, transport officials seized 14 electric vehicles.

 18 March- 4 stores were raided in Indore.  Due to the absence of trade certificates, notices of cause were issued. 17 to 19 March- 26 stores were raided in Mumbai and Pune, Maharashtra. 36 vehicles were seized and notices were issued.

 Action after complaint by 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.  Maharashtra transportation officials responded to the complaint. 95 percent of stores lack basic certification. Since 2022, Ola Electric has opened 4,000 stores. 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 about the raids on the stores.