Ola Electric Closes Punjab Showrooms Over Possible Raids
Ola Electric, led by Bhavish Aggarwal, has reportedly shut down its Experience Centers in Punjab to avoid potential raids by transport authorities. Sources suggest that the authorities planned to inspect Ola’s showrooms for violations related to trade certificates. While independent verification remains pending, geotagged images showed shutters down at several locations across Punjab.
Trade Certificate Violations Spark Raids Across Multiple Cities
A Bloomberg News investigation found that out of approximately 3,400 Ola showrooms, only 100 had the necessary trade certificates as per the Motor Vehicles Act. Ola Electric, once known for its digital-first approach, now operates 4,000 physical stores. However, authorities have cracked down on regulatory violations in cities such as Gwalior, Bokaro, Borivali, Patna, Raisen, and Chandrapur, leading to show-cause notices and fines.
Road Safety Expert Raises Concerns Over Fire Safety Compliance
Dr. Kamal Soi, a road safety expert and National Road Safety Council Member, lodged a complaint with Punjab Chief Minister Bhagwant Mann regarding Ola Electric’s non-compliance. He claimed that Ola’s showrooms lack fire safety certification despite selling lithium-ion battery-powered scooters, which could pose risks in extreme temperatures. His complaint was forwarded to the Transport Secretary for action, leading to further scrutiny.
Regulatory Requirements and Ongoing Inspections
A Regional Transport Office (RTO) official confirmed that Ola showrooms failed to produce a valid trade certificate, resulting in a challan. A trade certificate is mandatory for operating any automobile showroom in India. The RTO grants certification only after ensuring compliance with:
- Service station requirements
- Adequate staffing and parking facilities
- Fire safety regulations
- Other essential standards
Customer Complaints and Workforce Layoffs Add to Ola’s Challenges
Beyond regulatory troubles, Ola Electric is also facing an increasing number of service complaints. The Central Consumer Protection Authority (CCPA) is investigating over 10,000 grievances related to product quality and customer service. Despite Ola’s efforts to expand its service network, concerns remain over its ability to address these issues. Additionally, the company recently laid off over 1,000 employees, which amounts to 25% of its workforce, further indicating internal challenges.
Conclusion
Ola Electric is facing mounting regulatory scrutiny, customer dissatisfaction, and financial setbacks. The company’s temporary shutdown of Punjab showrooms, combined with compliance violations and consumer complaints, raises concerns about its operational stability. As authorities tighten oversight, Ola will need to navigate legal hurdles and rebuild trust with customers.
