Maharashtra Cracks Down on Ola Electric Stores Operating Without Trade Certificates

The Maharashtra government has taken firm steps against Ola Electric Mobility Ltd., directing regional transport offices (RTOs) to shut down any store or service centre operating without a valid trade certificate. This move marks a broader regulatory crackdown on the Bengaluru-based electric vehicle manufacturer.

RTOs were instructed to act within a day and report closures, signalling the urgency and seriousness with which the state is approaching this issue.

Legal Basis for the Crackdown

The action stems from legal provisions under the Central Motor Vehicles Act, 1988, and the Central Motor Vehicle Rules, 1989. Specifically:

• Section 39 of the Central Motor Vehicles Act, 1988 mandates that no vehicle can be delivered to a buyer without registration, which requires the dealer to hold a trade certificate.

• Rule 33 of the Central Motor Vehicle Rules, 1989, outlines the procedures for obtaining such a certificate.

• Rule 35 further clarifies that every individual outlet, showroom, or dealership engaged in vehicle sales or display must have a separate business certificate issued by the relevant authority.

These legal requirements ensure that vehicle sales are traceable and that compliance is maintained across all retail touchpoints.

Initial Inspections and Findings

The situation escalated in early March, when RTOs in Mumbai and Pune began inspecting Ola Electric’s experience centres. According to a news report, Transport Minister Pratap Sarnaik, several of these outlets were found either without a trade certificate or sharing a single certificate among multiple centres, violating the regulatory norm of one certificate per establishment.

Ola Electric’s Response and Ongoing Compliance Issues

In response to a March 31 show cause notice, Ola Electric stated that it was in the process of applying for trade certificates for all of its locations in Maharashtra. Despite this assurance, inspections have continued, and enforcement actions remain in effect.

As of April 16, Maharashtra’s RTOs had inspected 146 Ola Electric stores, with 121 found to be non-compliant. Consequently, 75 of these centres have been shut down, and 192 scooters have been seized.

Read More: Ola Electric Shares Drop 4% Amid Regulatory Violations; Stock Down 36% YTD.

Share Price Performance

Ola Electric’s share price showed a slight uptick, up 0.19% at ₹53 as of 12:03 PM.

Conclusion

This episode underscores the importance of aligning operations with state and central motor vehicle norms, especially as the EV industry continues to scale.  The company’s regulatory hurdles in Maharashtra highlight the challenges of compliance in the fast-evolving electric vehicle space.

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