Ola Electric Faces Major Setback in Maharashtra as 75 Stores Shut Down

Ola Electric, a premier name in India’s electric vehicle sector, is facing a severe regulatory setback. The Maharashtra Regional Transport Offices (RTOs) took a hard look at the company’s outlets, a total of 146 spread across the state. What they found was alarming: 121 of these outlets were supposedly running without the most basic legal documents, a trade certificate, that every outfit in this sector is required to have under the Central Motor Vehicles Act. 75 of these outlets have been put on notice, told to close up, with a total of 192 scooters impounded as part of the revenue recovery effort.

The inspections began in early March 2025, in response to reports of growing numbers of vehicle dealerships operating without trade certificates or using a single certificate among several stores, notably in Mumbai and Pune. Under the law, an authorized trade certificate must be displayed at each location where a dealership sells or services vehicles. Pratap Sarnaik, the Maharashtra Transport Minister who led this crackdown, has made clear that not complying with this law will no longer be tolerated.

Regulatory Lapses Spark Government Action

The matter peaked on April 16 when the joint transport commissioner of Maharashtra told all RTOs to shut down Ola Electric showrooms and service centres that were operating in violation of trade certification norms. The move came after a show cause notice and was meant to take immediate effect, with RTOs reporting back within 24 hours that they had closed any offending centre. The commissioner also indicated that any such centres found to be using their trade certificates in a manner that was not intended should have their trade certificates cancelled.

This action has brought the overarching matter of regulatory compliance into the spotlight; we now see it very clearly, indeed, and the electric two-wheeler market must take note. Ola Electric attained meteoric upward movement in not too long a time, but this swift success may have outpaced the setting and meeting of internal compliance standards that ensure, above all, customers working in the marketplace are safe, also ensuring that the company functions in accordance with the law.

Ola’s Response and Market Resilience

Ola Electric is facing increasing pressure, but it has attempted to remain steady. The company has responded to the media reports by saying that the allegations are speculative and misplaced. A company spokesperson reiterated Ola's commitment to working with the state's transport authorities to address what has been reported. The EV maker also stated that it is in the process of obtaining trade certificates for all its operational centres within the state, a procedure they claim was already underway before the enforcement operation.

Even in the middle of this controversy, Ola is charging ahead with its innovation-driven strategy. The brand recently unveiled the Roadster X, its first all-electric motorcycle lineup. With such features as brake-by-wire technology, cruise control, and even reverse mode, the Roadster X positions Ola pretty squarely as a tech-savvy disruptor in the motorcycle market. And at prices between INR 84,999 and INR 184,999, the lineup is pitched at a broad spectrum of consumers.