Recent reports indicate that government agencies are investigating Ola Electric for inconsistencies between its reported sales and actual vehicle registrations. In response to this inquiry, Ola Electric explained that the disparity observed in February was a result of a 'temporary' backlog in registrations, which the company has linked to 'negotiations with its vendors.'

The Heavy Industries Ministry has directed the Automotive Research Association of India (ARAI) to examine the differences between Ola Electric's reported sales figures and the actual registrations, in addition to addressing several consumer complaints regarding the electric two-wheeler manufacturer. A report on this matter is anticipated within 15 days.

In February, Ola Electric recorded 8,652 vehicle registrations on the Vahan portal, while its sales for that month surpassed 25,000 units. By March 20, the total registrations on the portal increased to 11,781.

Ola Electric is taking advantage of the FAME II and PM E-DRIVE initiatives, with the Automotive Research Association of India (ARAI) issuing its eligibility certificate, which is a certification and testing body under the ministry's jurisdiction.

Additionally, the company is under investigation by several authorities, including the consumer rights regulator CCPA, which is looking into complaints regarding alleged service issues and defects in its electric two-wheelers.

These insolvency proceedings come as Ola Electric Mobility plans to reduce its workforce by approximately 1,000 positions across different departments, as part of a restructuring strategy aimed at minimizing losses.

This week, shares of Ola Electric Mobility fell by over 6 percent, reaching a record low after the company announced that one of its subsidiaries is facing an insolvency petition from a creditor. The stock price dropped by as much as 6.2 percent to 47.4 rupees around 10:01 a.m. IST, representing a nearly 38 percent decline from its IPO price of 76 rupees in August 2024.

Rosmerta Digital Services, a vehicle registration service provider and creditor of Ola Electric Technologies, initiated the insolvency petition, citing defaults in payment, although the company did not disclose the specific amount involved in the default.

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