In various towns of Maharashtra, customers visiting Ola Electric experience centres were met with locked doors this week. This happened as the state’s transport department shut down 75 of its showrooms for not having proper trade certificates — a crucial regulatory requirement for operating vehicle dealerships.
According to NDTV Profit, the issue came to light after a directive from Maharashtra’s Joint Transport Commissioner, who called for immediate closure of any Ola Electric outlet running without the necessary documents. The directive, issued via email on April 16, left regional transport offices (RTOs) with just one day to carry out inspections and report back.
Why were Ola Electric stores shut?
On 16 April, Maharashtra’s joint transport commissioner issued a directive to regional transport offices (RTOs), noting that 121 out of 146 inspected Ola Electric “experience centres” lacked valid trade certificates under the Motor Vehicles Act.
Trade certificates are mandatory for selling or showcasing vehicles in India. Without them, a dealership is technically unauthorised to conduct business.
Inspectors were instructed to shut down any showroom or service centre found operating without this mandatory permit and to cancel original certificates if they were being misused or shared among multiple locations.
Within 24 hours, 75 of Ola Electric outlets were closed, and their access to the state’s vehicle-registration system was disabled.
More than just locking showrooms
The enforcement drive did more than lock showroom doors: 192 electric scooters were also seized during raids in early March and April, as RTO officials combed through Bengaluru-based Ola’s retail network.
Authorities in key cities such as Mumbai and Pune discovered that some “experience centres” were sharing trade certificates or operating entirely without them. Transport Minister Pratap Sarnaik warned that any further non-compliance would invite stricter penalties, heightening uncertainty for dealers and customers alike.
What does Ola Electric say?
The NDTV Profit report adds that Ola Electric has defended its record, calling the allegations “speculative, incorrect and misplaced,” and insists it is actively applying for trade certificates across all Maharashtra locations.
The company’s representatives also say that they are working closely with RTOs to resolve queries and restore operations promptly.
“Your claims regarding our stores in Maharashtra are speculative, incorrect, and misplaced,” the company spokesperson said as per the NDTV Profit report and added, “We continue to work closely with the concerned authorities in Maharashtra to address any specific queries or concerns.”
