Ola Electric Faces SEBI Probe Over Alleged Sales Data Irregularities

The Securities and Exchange Board of India (SEBI) is investigating Ola Electric for alleged irregularities in its sales statements for February 2025, CNBC-TV18 reported on 28 April 2025.

SEBI is reviewing Ola Electric’s statements regarding February sales figures, along with prior filings, for any apparent inconsistencies. The market authority is also examining whether investors were short-changed due to any misleading or inaccurate disclosures by the company.

The Mismatch

In a filing dated 28 February, Ola Electric claimed to have sold over 25,000 electric scooters that month. However, data from the government’s VAHAN portal showed only approximately 8,600 registrations during the same period. Ola attributed the discrepancy to a temporary backlog in registrations, citing the termination of contracts with two companies responsible for the registration process, and stated that these issues would be resolved promptly.

Further investigation revealed that Ola’s February sales data included bookings for vehicles that had not yet been delivered. Specifically, the company recorded 10,866 bookings for its third-generation e-scooters and 1,395 for the Roadster X motorcycle, neither of which had begun deliveries. These bookings accounted for approximately half of all reported sales.

Ola clarified that its new approach involves a direct-to-consumer business model rather than a dealership network.

Due to legal concerns, the Ministry of Road Transport and Highways directed Ola to revise its sales figures to include only billed and delivered vehicles. The ministry also warned of severe consequences if the company failed to provide a satisfactory explanation within seven days.

Trade Certificate Issue

Ola Electric has faced multiple challenges in recent months, with new concerns arising regarding its missing trade certificates. According to an NDTV report, the Union Ministry of Road Transport and Highways reprimanded the EV giant on Thursday for allegedly failing to provide trade certificates.

The ministry issued a show-cause notice to Ola, directing the company to specify the number of stores and service centres currently operational. The report also noted that the ministry requested details on the number of trade certificates obtained over the past three years, including their issuance dates.

The Ministry of Road Transport and Highways is currently investigating whether Ola Electric is stocking unregistered vehicles at its outlets. Additionally, the ministry has requested model- and variant-specific details for the 7,820 electric scooters Ola Electric claimed to have delivered in February 2025.