Ola Electric’s troubles increased, after Maharashtra, raids on the company’s stores in Madhya Pradesh

Problems have increased for Ola Electric, one of the big electric two-wheeler companies. After Maharashtra, raids have been conducted on the company’s stores in Madhya Pradesh as well. Transport authorities in both these states have found many of the company’s stores without a trade certificate, while some stores were sharing a trade certificate.

At least four Ola Electric stores in Indore, Madhya Pradesh and two in Jabalpur have been raided. NDTV Profit has seen the inspection letters related to this. These stores of the company are called ‘Experience Centers’. Transport authority officials have seized at least 14 electric scooters in Jabalpur. These stores have received a three-day notice to give clarification on the situation. Raids have been conducted on the company’s stores in Maharashtra as well. 26 stores of Ola Electric were inspected in Mumbai. Some of these stores did not have a trade certificate.

According to the Central Motor Vehicles Act and Rule 33 of the Central Motor Vehicles, manufacturers and distributors of vehicles need a business certificate for registration of vehicles. Rule 35 of the Central Motor Vehicles Rules states that a separate business certificate is required from the registering authority for every establishment, showroom or dealership engaged in the sale or trade of vehicles. If there is no trade certificate, a penalty is imposed on the manufacturer and distributor of the vehicle under Section 192 of the Motor Vehicles Act.

Recently, an insolvency petition was filed against a unit of Ola Electric by its vehicle registration service provider for not paying the outstanding amount. This petition was filed against Ola Electric Technologies. Two separate insolvency petitions have been filed against Ola Electric Technologies by Rosmerta Digital Services and Rosmerta Safety Systems, which provide vehicle registration services and high-security registration plates. The reason cited in these petitions is non-payment of dues. Rosmerta Digital Services has claimed dues of about Rs 22 crore and Rosmerta Safety Systems has claimed dues of about Rs 2.5 crore.