Govt Issues Show-Cause Notice To Ola Electric Over Sales-Registration Mismatch
The Bhavish Aggarwal-led electric vehicle (EV) maker has been asked to respond to whether Ola scooters sold in February are on the road without registrations; whether Ola scooters were delivered to customers without number plates; and whether Ola scooters are being sold from stores without trade certificates.
Ministry of Road Transport and Highways has reportedly sent a fresh show-cause notice to Ola Electric Mobility, seeking an explanation about mismatch in its sales numbers recorded in February. | X @Mobility_Media
New Delhi: The Ministry of Road Transport and Highways has reportedly sent a fresh show-cause notice to Ola Electric Mobility, seeking an explanation about mismatch in its sales numbers recorded in February.
The show-cause notice, dated March 21, seeks details about Ola scooters of various models sold and registered last month, reports NDTV Profit.
The Bhavish Aggarwal-led electric vehicle (EV) maker has been asked to respond to whether Ola scooters sold in February are on the road without registrations; whether Ola scooters were delivered to customers without number plates; and whether Ola scooters are being sold from stores without trade certificates.
It was not clear yet if the EV maker had responded to the ministry’s letter within the seven-day deadline.
Ola Electric claimed to have sold 25,000 scooters in February but only 8,652 of them were registered due to renegotiation of contracts with vendors that handled vehicle registrations.
The vendors, Rosmerta Group, subsequently filed insolvency petitions against the company over unpaid dues of up to Rs 25 crore.
Ola Electric said it has “amicably settled all outstanding dues between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group” and the Rosmerta Group has filed the memo for withdrawal of the petitions filed before the National Company Law Tribunal (NCLT), Bengaluru.
On Friday, Ola Electric shares fell 3.81 per cent to Rs 52.97 apiece on the BSE.
Last week, the Maharashtra government intensified its scrutiny of Ola Electric stores over alleged trade violations. Officials from five regional transport offices inspected 26 Ola Electric stores in Mumbai and Pune to check for trade certificates, according to sources. As a result, authorities also confiscated a total of 36 Ola Electric scooters.
Maharashtra’s Transport Minister, Pratap Sarnaik, ordered immediate action on the complaint and asked for a report on the matter. Officials from four Mumbai RTOs and one Pune RTO carried out the inspections.
Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.
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