Ola Electric, one of India’s leading electric vehicle manufacturers, is facing increased scrutiny from the central government following a significant discrepancy between the company’s reported sales figures and the actual number of vehicle registrations. The Ministry of Heavy Industries (MHI) has reportedly sought clarification from the Bhavish Aggarwal-led company after official data from the government’s Vahan portal revealed a substantial mismatch.
According to sources cited by financial news outlets, Ola Electric claimed to have sold approximately 25,000 electric scooters in February 2025. However, data from the Vahan portal, which tracks vehicle registrations across the country, showed that only around 8,600 Ola Electric vehicles were registered during the same period. This gap of over 16,000 unregistered scooters has raised serious concerns about the transparency of sales reporting within the burgeoning electric vehicle sector.
The MHI had previously sent a letter to Ola Electric seeking an explanation for this anomaly. Now, reports suggest that the ministry is preparing to send a second, more detailed letter to the company, demanding further information and clarification on the discrepancy. Heavy Industries Minister HD Kumaraswamy is expected to dispatch this follow-up letter by next week.
This development comes at a time when Ola Electric is gearing up for its initial public offering (IPO). The significant difference between the company’s claimed sales and the official registration numbers could have serious implications for its financial reporting and investor confidence. Ola Electric’s draft red herring prospectus (DRHP), filed with the Securities and Exchange Board of India (SEBI) before its IPO, reportedly states that the company recognizes revenue only after a scooter is delivered and registered on the same day. This discrepancy directly contradicts that statement and raises questions about the accuracy of their reported sales figures.
Industry insiders speculate that Ola Electric might have been reporting bookings as actual sales, potentially inflating their market perception and misleading stakeholders. Such practices, if proven true, could lead to regulatory penalties and further action from SEBI and stock exchanges, who are likely to demand a thorough explanation from the company.
The Motor Vehicles Act mandates that all vehicles must be registered with the state transport department within seven days of sale. Furthermore, the Central Motor Vehicles Rules of 1989 explicitly prohibit the delivery of vehicles without either temporary or permanent registration. If Ola Electric has failed to adhere to these regulations, both the company and its customers operating unregistered vehicles could face legal consequences.
Adding to Ola Electric’s woes, the Maharashtra Regional Transport Office (RTO) has initiated inspections at several of the company’s showrooms across the state, including in major cities like Mumbai and Pune. These inspections aim to verify if the vehicles being sold have the necessary documentation and if the sales are being conducted under valid trade certificates.
Recent reports indicate that authorities in Mumbai and Pune have seized a total of 36 Ola Electric scooters due to alleged violations. A complaint filed by a Gurugram-based firm reportedly alleged that Ola Electric was operating showrooms and service centers in Maharashtra using a single trade certificate, which is not permitted under the law. An inspection report confirmed these allegations, leading to the seizure of the vehicles. Maharashtra’s Transport Minister has ordered immediate action on the complaint and requested a detailed report on the matter.
The regulatory heat is not limited to Maharashtra. Reports suggest that 11 Ola Electric stores have been shut down in Punjab. Additionally, RTO authorities in Jabalpur have reportedly issued notices to the company after discovering unregistered scooters being sold without valid trade certification.
This mounting scrutiny comes at a challenging time for Ola Electric, which is already facing financial and legal hurdles. Recently, two of its vendors, Rosmerta Digital Services Private Ltd and Rosmerta Safety Systems Private Ltd, who were responsible for processing vehicle registrations and manufacturing high-security number plates, initiated insolvency proceedings against an Ola Electric subsidiary over unpaid dues of approximately ₹24.5 crore. While Ola Electric has acknowledged one such petition filed with the National Company Law Tribunal (NCLT) in Bengaluru, the financial strain and the ongoing legal battles add to the company’s troubles.
Following the reports of the sales-registration mismatch and the regulatory crackdown, Ola Electric’s stock witnessed a significant drop of over 7% on the Bombay Stock Exchange (BSE), closing at ₹46.91 on the previous day. The company has so far remained silent on the issue and has not issued any official statement to address the allegations or the regulatory actions.
The coming days and weeks are likely to be crucial for Ola Electric as it navigates this regulatory storm. The outcome of the MHI’s investigation and SEBI’s potential intervention could significantly impact the company’s IPO plans and its standing in the Indian electric vehicle market. Investors and industry analysts will be closely watching how Ola Electric addresses these serious allegations and the steps it takes to ensure transparency and compliance in its operations.
