Bhavish Aggarwal-led Ola Electric on Friday said it has received notices in four states with regard to trade certificates for few of its stores in these states. The automaker said it is in the process of responding to the same.

While there are no ongoing negotiations with states like Maharashtra, Madhya Pradesh and Punjab, the EV maker said it has also received emails requesting information from the ministry of heavy industries (MHI) and ministry of road transport and highways (MoRTH).

The queries pertain to clarification on the non-compliance to the requirement of trade certificates by its showrooms and the large gap in vehicle registration as per Vahan portal and sales as per the company’s regulatory filing dated February 28, 2025, for the same month.

Ola Electric said it is in the process of responding to these queries.

“We have noted the false narratives being spread about our February 2025 sales data. Here are the facts: Our sales remain strong, and the temporary backlog in February was due to ongoing negotiations with our vendors responsible for vehicle registrations. This backlog is being rapidly cleared, with daily registrations exceeding 50% of our three-month daily sales average. 40% of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025,” Ola Electric said in a statement.

“This is a straightforward case of a temporary registration backlog, yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns,” it alleged.

“This intensified after we discontinued contracts with two nationwide vendors managing our registration process as part of our strategy to streamline operations and drive profitability. Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability,” the company claimed.

Reacting to the developments, shares of Ola Electric jumped 7% to hit a high of ₹55.35 on the BSE, taking the company’s market capitalisation to over ₹24,000 crore.

On Monday, Ola Electric shares hit an all-time low of ₹46.94 on the BSE after an insolvency petition was filed against its subsidiary Ola Electric Technologies Pvt Ltd by operational creditor Rosmerta Digital Services Ltd at National Company Law Tribunal’s (NCLT’s) Bengaluru Bench.

The insolvency plea alleged default in payment towards the services rendered by Rosmerta Digital.

In February, Ola Electric revealed that it had renegotiated its agreements with vehicle registration agencies, a decision that led to a temporary impact on registration figures on the Vahan portal in February. The company stated that the renegotiations were intended to lower costs and simplify the registration process.

According to Vahan, Ola's electric vehicle registrations in February reached 8,647 units. However, the company asserted that it sold over 25,000 units during the month, capturing a market share of more than 28%.