Ola Electric gets third notice from Road Transport Ministry over sales mismatch

Electric two-wheeler startup Ola Electric has received a third letter from the Ministry of Road Transport and Highways over a mismatch in sales and registrations for February. Government sources told CNBC-TV18 that Ola Electric’s replies have not been satisfactory, leading officials to issue a third letter. The Ministry sent the first letter to Ola on 18th March and a second on 21st March.

The company claims it sold 25,000 scooters in February, but actual registrations were only 8,652 due to a dispute with its vehicle registration vendors. Ola has said it would be able to complete the registrations of all scooters sold in February by the end of March.

So far in March, approximately 19,000 Ola Electric scooters have been registered, but it is unclear how many of these are for vehicles sold in February and how many were sold in March.

The Ministry has now sent very specific queries to Ola to ascertain the actual number of vehicles sold in February, the number of vehicles delivered, and the number of registrations for vehicles sold that month. The company has also been asked how many scooter models on sale have valid trade certificates. It has been given seven days to reply.

The company continues to face regulatory action from RTOs across the country. After Punjab, Madhya Pradesh, Telangana, and Maharashtra, its showrooms in Uttarakhand were sealed, and scooters were impounded for lacking valid trade certificates.

The Ministry of Heavy Industries is also awaiting a comprehensive report from ARAI on whether Ola Electric has active service centres across the country and whether it has violated any regulatory laws in reporting sales.

In a regulatory filing, Ola said it has resolved its legal dispute with Rosmerta Digital Services Limited. Rosmerta had taken Ola Electric to the NCLT for non-payment of dues amounting to ₹23 crore.

Leave a Reply

Your email address will not be published. Required fields are marked *