Bhavish Aggarwal-led Ola Electric is understood to have shut down its Experience Centres in Punjab — Aggarwal’s home state — on Tuesday apprehending the authorities would raid its showrooms. FE could not independently verify whether the showrooms were operational; however, geotagged photos were observed showing shutters coming down at several locations on Tuesday afternoon. Ola Electric manages roughly 18 showrooms across Punjab.
A Bloomberg News investigation had found that of roughly 3,400 showrooms, for which data is available, a little over 100 locations had trade certificates required under India’s Motor Vehicles Act. The company, once a leader in digital-only sales, has 4,000 physical stores.
Transport authorities across states have conducted raids in connection with trade certificate violations at Ola’s stores. The raids across cities including Gwalior, Bokaro, Borivali, Patna, Raisen, and Chandrapur led to show-cause notices and fines.
An FE query sent to Ola Electric remained answered till press time.
However, Dr. Kamal Soi, a road safety expert who filed a complaint with the Punjab Chief Minister Bhagwant Mann over Ola Electric’s non-compliance, said Ola Showrooms across Punjab remained closed for two days.
Dr. Kamal Soi’s complaint, submitted to the Punjab Chief Minister on March 10, was subsequently forwarded to the Transport Secretary for action.
“The company is selling scooters equipped with lithium-ion batteries without even having a fire safety certificate. I took action because, in summer, when temperatures can soar up to 50°C, the showroom becomes a ticking bomb,” said Soi, who is a Member of the National Road Safety Council.
A Regional Transport Office official FE spoke to in North India said that the department has issued a challan as Ola staff was unable to show the trade certificate.
A trade certificate is mandatory for operating any auto showroom in the country. The RTO issues the certificate only after an inspector evaluates the showroom to ensure it meets all necessary standards, including those for the service station, staffing, parking facilities, fire safety, and other regulatory requirements.
The company is also facing a slew of service complaints, with the Central Consumer Protection Authority (CCPA) launching an investigation into over 10,000 grievances against Ola’s electric vehicles. Amid mounting buyer complaints over quality and service issues, social media backlash, and widening losses in recent months, Ola founder Bhavish Aggarwal stated in an October post on X that Ola was expanding its network to address customer concerns—a strategy that is now coming under scrutiny.
Amid regulatory hurdles, Ola recently laid off over 1,000 employees — which is about 25% of its workforce.