Ola EV Stores Shut Down as Maharashtra Takes Strict Action on Trade Certificate Violations

Ola EV stores were shut down across Maharashtra after the state government discovered violations of trade certificate rules. The Regional Transport Offices (RTOs) were asked to inspect and act against Ola Electric outlets for not following the Motor Vehicles Act. Over 121 stores were found non-compliant, and at least 75 stores have already been closed, as reported by The Economic Times.

This move aims to ensure that all vehicle dealerships operate with valid permits. The Ola Electric trade certificate issue surfaced at a time when the company was expanding rapidly. Since its market debut in August 2024, Ola’s share price has dropped by over 60%.

Maharashtra’s Action on Non-Compliant Ola EV Stores

In April 2025, the Maharashtra government sent a show-cause notice to the RTOs. Any Ola Electric outlet without a valid trade certificate was asked to shut down. These certificates are mandatory under the Motor Vehicles Act.

So far, RTOs have inspected 146 Ola EV stores in the state. Out of these, 121 stores did not meet the legal requirements. As a result, 75 of them have already been shut down. The RTOs were given only one day to take action and report back on the closures.

Ola EV’s compliance investigation began in March. Several showrooms in Mumbai and Pune were found either without a certificate or sharing one between multiple locations. Sharing or missing a trade certificate is a serious offense.

Ola Cooperates with Government on Trade Certificate Issue

Another investigation found that out of 3,400 Ola stores in India, only around 100 had valid trade certificates. Over 95% of the outlets did not meet the minimum legal requirement.

This is not the first time the company has come under the scanner. Back in December, Ola Electric outlets faced shutdown warnings. The issues had already started surfacing when it added 3,200 new stores in a short period, increasing its network to 4,000.

In response to all the media queries, the company said that the non-compliance reports are “speculative, incorrect, and misplaced.” Ola is now working with regulatory bodies to resolve any new problems.

What’s Next for Ola Electric?

Despite these setbacks, Ola is still pushing forward with its new launches. The company recently introduced its first all-electric bike called the Roadster X. The bike includes brake-by-wire technology, cruise control, ABS, and a reverse mode feature.

These upcoming vehicle models would face difficulties because of the ongoing crisis. The Ola Electric trade certificate issue and the state government’s actions on the company have affected public trust. Continuous RTO inspections are still taking place. A lot more actions are waiting to be implemented. Ola Electric quickly needs to focus on fixing its compliance gaps.

The Ola EV store shutdown is a major blow for the EV startup. The company’s growth reached a critical point when serious legal problems forced it to pause operations at several locations. The increasing government pressure on the company is a threat to its reputation. Ola Electric needs to act fast and stay transparent to regain trust and market share.