'Missing Trade Certificates' Put Ola Under Government Investigation

Ola Electric is under more pressure than ever after the Transport Ministry requested trade certificates from the Bengaluru-based EV manufacturer. According to a media outlet, the company received a show-cause notification .

The notice stated that Ola Electric must respond to the aforementioned questions within seven days of receiving this letter in order to prevent any negative consequences.

Notice Also Seeking Details of Sales and Service Centres

On 24 April, Ola received a new show-cause notice that requested information on the number of sales and service centres the business now operates. The notice further asked about the number of trade certificates it has obtained in the last three years and the date of issuance of each certificate.

 Additionally, Ola Electric must clarify if its facilities are used to store unregistered automobiles. In addition to the aforementioned, the EV manufacturer must disclose the model and variant-by-variant information for the 7,820 EV scooters it sold in February.

Ola Electric stores operating without a trade certificate have been asked to close by the Maharashtra transport department, according to a media source. In a show-cause email to RTOs, Maharashtra's joint transport commissioner stated that action should be taken to close the centre and rescind the original trade certificate.

Outcome of the Raid Conducted on Ola Outlets

Out of 146 Ola stores overall, 121 were discovered to be operating without a trade certificate at the time of the raid. 192 Ola electric scooters have been confiscated by the authorities, and 75 of these have already been closed.

Regarding a letter from the authorities ordering the immediate closure of more than 100 showrooms in Maharashtra, Ola responded in an exchange filing on April 25. It stated that the brand was unaware of any such conversations or occurrences.

Furthermore, through its notification dated March 21, 2025, the business has already notified the exchange that it has received notices in four states about trade certifications for outlets situated in those states.

Unit Sale Discrepancy

The e-scooter manufacturer was recently under investigation for a discrepancy between its reported February sales and actual registrations. Ola reported selling over 25,000 units in their filing on February 28.

The official portal's automobile registration tally, however, provided a different picture. Only 8,600 Ola Electric scooters were registered on the portal during that time, according to the data.

Since the government has become aware of this disparity, the ministries of highways, road transport and heavy industries have asked the business for information in order to elucidate Ola's sales numbers.

The "large gap" between car registrations according to the VAHAN portal and sales according to the company's regulatory filing on February 28, 2025, for the month of February this year is the subject of these enquiries.

In response, the SoftBank-backed company informed the ministry that its February sales comprised client reservations for 1,395 Roadster X motorcycles and 10,866 third-generation e-scooters. The business called them "confirmed orders".