The Maharashtra government has directed Regional Transport Offices (RTOs) to shut down several Ola Electric stores across the state, citing violations of trade certification norms. This action follows inspections revealing that many stores were operating without the necessary trade certificates required under the Central Motor Vehicles Rules.
Inspections and Seizures in Mumbai and Pune
RTO officials conducted inspections in Mumbai and Pune, leading to the seizure of 36 Ola Electric scooters. In Mumbai alone, 10 stores were inspected, and 10 scooters were confiscated. The Pune RTO also took action, seizing additional vehicles from stores found to be non-compliant.
Allegations of Misuse of Trade Certificates
The crackdown was initiated after a complaint by Gurugram-based firm Preetpal Singh & Associates, alleging that Ola Electric was using a single trade certificate to operate multiple showrooms and service centers in Maharashtra, a practice not permitted under the law. The Deputy Transport Commissioner, Ravi Gaikwad, confirmed these allegations in an inspection report.
Government’s Response and Legal Framework
Transport Minister Pratap Sarnaik ordered immediate action on the complaint, resulting in inspections by four RTOs in Mumbai and one in Pune. According to the Central Motor Vehicles Rules, each showroom or dealership must possess a separate trade certificate to display or sell vehicles.
Ola Electric’s Expansion Amid Regulatory Scrutiny
Despite these regulatory challenges, Ola Electric had announced plans to expand its store network to 4,000 locations by December 2024, aiming to enhance accessibility to electric vehicles across India. However, the recent actions by the Maharashtra government highlight the importance of compliance with regulatory norms in such expansions.
Ongoing Investigations and Industry Implications
The situation underscores the need for electric vehicle manufacturers to adhere strictly to legal requirements. As investigations continue, the industry watches closely, understanding that regulatory compliance is crucial for sustainable growth and consumer trust.
