Ola Electric Showrooms Raided For Trade Certificate Violation, Vehicles Seized

Ola Electric Mobility Ltd.’s woes don't seem to end anytime soon. Earlier this week there were reports that the company had fired over 1,000 personnel from its organisation and now it has found itself in the firing line of the government agencies. According to a report, Ola Electric showrooms across the nation have been raided as it was found that dealerships didn’t have basic trade certificates. What’s more staggering is that not a few dealerships but the majority of the showrooms lacked the trade certificates. Out of the 4,000 dealerships, only 600 dealers had proper certification which means 95 per cent of the showrooms didn’t have the correct documents. The above certificates are required for display, sale, test rides and transport of unregistered two-wheelers.

The raids on Ola dealerships were conducted based on the many complaints filed by Ola customers who have been suffering for many years due to lack of any accountability or service by the brand. In fact the company was served a show-cause notice by the ​​Central Consumer Protection Authority (CCPA) last year. Based on the raids conducted, authorities have closed many dealerships, seized Ola scooters and even served show-cause notices. According to the report, Ola Electric maintains that it has all the necessary approvals for storage of vehicles, but didn’t comment on the legality of its dealerships. 

Ola Electric, once the segment leader of electric two-wheelers has been struggling to find buyers in the recent months and Bajaj Auto has dethroned it from the top. Despite a mega IPO listing, the share prices of the brand have dropped massively by almost 60 per cent from its listing price. Ola made a big announcement of entering the electric motorcycle segment in January, 2025, but till now there has been no progress in this regard.