75 showrooms of Ola Electric, which were running without a trade license in Maharashtra, have been closed. Out of a total of 146, 121 stores were running illegally. This action is a major blow to the company’s sales and expansion plans.
Mumbai: Maharashtra government has closed many showrooms of Ola Electric which were running without proper trade license. Of the 146 Ola Electric stores, 121 were running without the correct licenses and 75 have been forced to close. Bhavish Aggarwal’s Ola Electric is once again in trouble. With the increasing craze for electric vehicles in the country, companies like Ola Electric are growing rapidly. But Ola is facing many problems since the beginning. Now the strict action of Maharashtra government is a big blow for Ola Electric. It is reported that Maharashtra Transport Department has closed many showrooms of Ola Electric. The Joint Transport Commissioner of Maharashtra has directed the RTOs to close the stores and service centers of Ola Electric running without proper trade license.
Unlicensed stores locked
According to a Financial Express report, RTO officials found that out of 146 Ola Electric stores in Maharashtra, 121 were running without the correct licenses and 75 have been forced to close. Apart from this, many reports have said that many electric scooters have also been seized. This action has been taken because these dealerships did not have the necessary trade license to sell or show any vehicle for test drive in India. Trade license is a government permit that allows any showroom to sell vehicles and offer test drives. It is illegal to sell or show a vehicle without it.
The Joint Transport Commissioner of Maharashtra has directed all RTO officials to block the login IDs of all such dealerships within 24 hours. Information about the action taken so far will have to be sent to the government. The status of showrooms breaking the rules will be updated. In March 2025, the Maharashtra Transport Department had initiated action against dealers and showrooms without proper trade licenses. Initially, more than 450 stores of Ola Electric were found violating this rule.
According to reports, some stores in Mumbai and Pune did not have licenses. As per the Central Motor Vehicles Act, all dealerships are required to have a trade license for the sale and delivery of vehicles. Apart from this, it is also mandatory to display the trade license in the showroom. It is worth noting that this action has taken place at a time when Ola Electric is trying to expand its electric vehicle network across the country. In Maharashtra, a major market for electric vehicles, such disruptions will impact the company’s sales and brand image.