Ola Electric in Problem, Stores of Company Raided in Maharashtra and Madhya Pradesh

The difficulties have increased for Ola Electric included in large electric two-wheeler companies. After Maharashtra, raids have also been conducted on the company’s stores in Madhya Pradesh. In these two states, transport authorities have found many stores of the company without a trade certificate, while some stores were sharing a trade certificate.

At least four stores of Ola Electric in Indore, Madhya Pradesh and two stores in Jabalpur have been raided. NDTV Profit Has seen the inspection letters associated with it. These stores of the company are called ‘Experience Center’. Transport Authority officials seized at least 14 electric scooters in Jabalpur. These stores have received a three -day notice to clarify about the situation. The company’s stores have also been raided in Maharashtra. Ola Electric’s 26 stores were inspected in Mumbai. Some of these stores did not have a trade certificate.

According to Rule 33 of the Central Motor Vehicle Act and Central Motor Vehicles, manufactures and distributors of vehicles need a business certificate for registration of vehicles. Rules 35 of the Central Motor Vehicle Rules states that it is necessary to take a separate business certificate from the sale of vehicles or the authority for every estabelisment, showroom or dealership related to trade. If there is no trade certificate, then a penalty is imposed on the manufacturer and distributor of the vehicle under section 192 of the Motor Vehicle Act.

Recently, its vehicle registration service provider filed a petition for not paying the dues against a unit of Ola Electric. This petition was filed against Ola Electric Technologies. Two separate calls have been filed against Ola Electric Technologies against Rosmerta Digital Services and Rosmerta Safety Systems providing vehicle registration services and high-quality registration plates. The reason for non -payment of arrears in these petitions has been given. Rosmerta Digital Services claimed about Rs 22 crore and Rosmerta Safety Systems has claimed an outstanding amount of about Rs 2.5 crore.