Ola Electric Shuts Down Punjab Showrooms Fearing Official Raids

Ola Electric is once again in the headlines for all the wrong reasons. As reported earlier, Bhavish Aggarwal’s electric scooter manufacturer, Ola Electric Mobility, is experiencing severe regulatory issues amid its rapid expansion into physical showrooms.

According to recent reports, the Punjab transport department planned inspections at Ola's electric vehicle showrooms due to alleged trade certificate violations. However, Ola Electric reportedly shut down its outlets across the state to avoid scrutiny.

What actually happened?

Geotagged images confirm that multiple showrooms of Ola Electric have their shutters down across Punjab, to avoid possible raids by transportation officials. 

The company has not officially responded to the allegations.

Incidentally, Punjab is not the only province experiencing regulatory issues with Ola Electric.

According to a Bloomberg News investigation, nationwide only around 100 of the roughly 3,400 Ola dealerships possess the required trade certifications under the Motor Vehicles Act, of India.

Authorities have already issued fines and show-cause warnings to Ola’s different retail outlets.

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Why trade certificate is essential for automobile showrooms?

A trade certificate is a mandatory legal requirement for any automobile showroom in India. It guarantees compliance with essential operational standards, such as:

• Proper service station infrastructure

• Fire safety measures

• Adequate staffing and parking facilities

• Other operational guidelines specified by transport authorities

Without this certification, it is illegal for an automobile showroom to sell or display vehicles in India. The absence of valid trade certificates in most Ola Electric showrooms casts doubt on the company’s adherence to industry regulations.

Additionally, Bhavish Aggarwal founded Ola Electric is also facing scrutiny over fire safety compliance. Dr Kamal Soi, a National Road Safety Council member, has complained to Punjab Chief Minister Bhagwant Mann, pointing out the lack of fire safety measures in Ola’s showrooms.

As Ola sells lithium-ion battery-powered scooters which are vulnerable to extreme temperatures—this concern is particularly alarming. Following his complaint, the Transport Secretary has taken up the matter, adding another layer of scrutiny to Ola’s operations. [Source: Tech Story]

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