New Delhi: The Union Ministry of Road Transport and Highways has issued a show-cause notice to Ola Electric Mobility Limited over missing trade certificates. In the notice dated April 24, the ministry asked Bhavish Aggarwal-run Ola Electric to provide detailed information about the number of stores and service centres it currently operates, as well as the number of trade certificates it has obtained in the past three years, including their issuance dates, as per a media report.
The company has also been asked to clarify whether it is stocking unregistered vehicles at its centres, the report added. The ministry further demanded model-wise and variant-wise data for the 7,820 electric scooters Ola Electric claimed to have delivered in February this year.
The company has been directed to respond within seven days of receiving the notice to avoid any adverse action.
In response, Ola Electric said that it had already disclosed the necessary information to the stock exchanges and denied having received any order to shut down over 100 of its showrooms in Maharashtra.
The company made this clarification in a filing to the National Stock Exchange (NSE) on Friday, responding to a media report about enforcement action by the Maharashtra Transport Department.
“We are not aware of any such negotiations or events regarding a notice from the authorities ordering the immediate closure of over 100 showrooms in Maharashtra,” the company said in its NSE filing.
Ola Electric also said that it had already informed exchanges on March 21 about receiving notices from four states related to trade certificates at certain outlets.
It maintained that all required disclosures have been made in line with SEBI regulations, and there is no undisclosed information that could explain recent movements in its share price.
“There is no material impact of this article on the company,” Ola Electric added. As per Indian law, dealerships must have a valid trade certificate to sell vehicles or even offer test drives.
Around 1.45 pm, Ola Electric shares were down nearly 4 per cent at Rs 50.39 on Friday on the NSE.