Olectra Greentech Limited has issued a clarification on recent media reports that claimed a massive fine had been imposed on the company by Pune Mahanagar Parivahan Mahamandal Limited (PMPML). A news article published on 15 September 2025 had suggested that PMPML imposed a penalty of Rs 255 crore on Olectra Greentech. The company has now confirmed that no such fine has been imposed directly on Olectra Greentech Limited.

The company explained that it has been directly operating 150 electric buses in Pune under contracts with PMPML, and none of these contracts have resulted in penalties of the kind reported in the media. Instead, Olectra clarified that the penalties in question are related to EVEY Trans Private Limited and OHA Commute Private Limited, which is a Special Purpose Vehicle of EVEY. Both entities had concession agreements with PMPML for the supply, operation, and maintenance of 350 and 150 buses, respectively.

Olectra further highlighted that, under the tender conditions, these buses were procured from Olectra, but the contractual responsibility for penalties falls on EVEY and OHA. In October 2023, PMPML issued orders to levy penalties of around Rs 40.39 crore on EVEY and Rs 215.43 crore on OHA Commute Private Limited for alleged late delivery and non-delivery of buses.

Both EVEY and OHA have since challenged these penalties in the Bombay High Court, which referred the matter to arbitration proceedings. PMPML has also filed review petitions against the previous court orders, meaning the issue is still sub-judice. The company underlined that the recent news article simply relates to these long-standing disputes and does not imply any fresh penalty against Olectra Greentech itself.

By releasing this clarification under Regulation 30(11) of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, Olectra has sought to assure its shareholders and stakeholders that the reported penalties do not apply directly to its operations.

The development is crucial since Olectra Greentech is one of India’s leading electric bus manufacturers, playing a significant role in the country’s electric mobility push. Incorrect media reports could have created confusion among investors, particularly given the financial scale of the alleged penalties.

With the matter still before the courts and arbitration proceedings ongoing, the final resolution of the dispute between PMPML, EVEY, and OHA Commute will determine the actual financial liability. Olectra’s clarification helps separate the company’s direct contractual obligations from those of its partners and Special Purpose Vehicles.

This update ensures that stakeholders have clarity about Olectra’s position and reassures investors that the company has not been subjected to the penalties as claimed in the reports.

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