Big blow to Ola Electric, government shuts down 75 stores of the company in Maharashtra
Problems are increasing for Ola Electric, one of the big electric two-wheeler companies. Due to irregularities in trade certificates, the state government is scrutinizing the company’s stores in Maharashtra. 146 stores of Ola Electric were inspected in the state. About 121 of these stores were being run without trade certificates. 75 of these stores have been closed by the state government.
NDTV Profit quoted the Joint Transport Commissioner of Maharashtra as saying on the issue related to Ola Electric’s trade certificate, “Action should be taken against such stores and the actual trade certificate should be canceled.” However, a representative of Ola Electric had said in this regard, “Your claims about our stores in Maharashtra are false and misleading. We are working closely with the concerned authorities in Maharashtra to address any questions or apprehensions.” Earlier, the Maharashtra government had issued a notice to Ola Electric for not having a trade certificate for some of its stores in the state. In March, the transport authority raided several stores of the company in Maharashtra. The notice said, “It has been found that your company is operating with unauthorized showrooms and stores and is selling vehicles illegally. This is a very serious matter. You are requested to provide an explanation as to why action should not be taken against your company for this activity.” The notice was sent on March 31 on the letterhead of the office of the Transport Commissioner of Maharashtra. The notice was signed by Joint Transport Commissioner, Ravi Gaikwad.
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 the registration of vehicles. Rule 35 of the Central Motor Vehicles Rules states that every establishment, showroom or dealership engaged in the sale or trade of vehicles must obtain a separate business certificate from the registering authority. If there is no trade certificate, the manufacturer and distributor of the vehicle can be prosecuted under Section 192 of the Motor Vehicles Act.
