Ministries are requesting justifications regarding Ola Electric's reported "non-compliance with trade certificate requirements."
Government ministries are investigating a major difference between the number of vehicles registered on the VAHAN portal and the sales figures reported by the company in their February 28, 2025 filing for the month of February 2025.. Ola Electric is in the process of responding to these queries.
In February, Ola Electric had registered a total of 8,652 vehicles in the Vahan portal, whereas it had reported sales of over 25,000 units for the said month. Until March 20, the registrations on the Vahan portal of the company stood at 11,781.
Additionally, the firm stated that it has received notices from four states for trade certificates for certain of its stores within those states and is currently answering those notices.
In another statement, Ola Electric noted that its sales are still strong and that the brief backlog in February was due to ongoing negotiations with vendors that deal with vehicle registrations. They also mentioned that such backlog is being rapidly cleared, with daily registration already exceeding 50% of their average daily sales for the last three months. They also indicated that already 40% of the backlog for February had been cleared and they are hoping to clear the remaining by the end of March 2025.
The company blamed vested interests for malicious misrepresentation and campaigns of calumny. This came after it canceled contracts with two national registration suppliers as part of a restructuring and profit-maximizing move. Since that shift, there's been an orchestrated attempt to cause confusion and fuel unnecessary controversy, the company said.
They added, "We're committed to clearing the backlog quickly and continuing to provide our customers with transparency and reliability."
Last week, Ola Electric Mobility said that its vehicle registration services provider, Rosmerta Digital Services, had initiated insolvency proceedings against its subsidiary, Ola Electric Technologies. Rosmerta Digital Services had filed a petition to the National Company Law Tribunal at Bengaluru, alleging that Ola Electric Technologies failed to make payment for the services rendered and is looking to initiate the corporate insolvency resolution process (CIRP).
In February, Ola Electric Mobility stated that it was negotiating with its service providers, Rosmerta Digital Services and Shimnit India, to renegotiate the contracts in order to reduce costs and make the registration process more efficient. The company said this would temporarily impact its Vahan registration.
