Ola Electric faces more regulatory heat over lack of trade certificates – CNBC TV18

Homegrown e-two-wheeler producer Ola Electric is more likely to face elevated authorities scrutiny over non-compliance with Motor Car Guidelines.

The Ministry of Highway Transport and Highways (MoRTH) is getting ready to problem a fourth letter to the corporate, demanding detailed details about its shops throughout India, together with what number of maintain legitimate trade certificates and the way many don’t, revealed sources to CNBC-TV18.

The Ministry of Highway Transport can be investigating discrepancies between Ola Electric’s automobile registrations and precise gross sales figures, looking for additional clarification from the corporate.

Moreover, the Ministry of Heavy Industries has enlisted 4 testing companies to research a number of complaints filed towards Ola Electric, including one other layer of scrutiny to the corporate’s operations.

The Maharashtra Transport Division lately ordered the closure of more than 100 Ola Electric shops statewide after inspections revealed widespread non-compliance. Of 131 showrooms checked, 107 have been discovered to be working with out the required trade certificates.

So far, 43 shops have been shut down and 214 autos seized. Native Regional Transport Places of work (RTOs) have been instructed to deactivate the login credentials of offending dealerships and report enforcement updates inside 24 hours.

Below Indian legislation, dealerships should acquire trade certificates to legally promote autos or provide them for take a look at drives. The Maharashtra Transport Division’s actions stem from experiences of unlicensed gross sales actions at Ola Electric shops.