Olectra Greentech Limited issued a clarification to stock exchanges stating that no penalties have been imposed directly on the company regarding its bus operations with Pune Mahanagar Parivahan Mahalimited (PMPML), responding to a news report published in Hindustan Times on September 15.
The company clarified that it operates 150 buses directly with PMPML under separate contracts without any alleged penalties. The disputed penalties relate to two other entities - EVEY Trans Private Limited and OHA Commute Private Limited - which have concession agreements with PMPML for 350 and 150 buses respectively.
According to the stock exchange filing, PMPML issued penalty orders in October 2023 against EVEY Trans (₹40.39 crore) and OHA Commute (₹15.43 crore) for alleged late delivery and non-delivery of buses. These buses were procured from Olectra as per tender conditions.
Both EVEY Trans and OHA Commute have challenged the penalty orders before the Bombay High Court, which referred the matters to arbitration. PMPML has filed review petitions against the court's previous orders, with the matter currently pending in court.
The clarification was issued under Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to clarify news reports that may impact stock prices.
Olectra Greentech operates in the electric vehicle manufacturing sector, supplying buses to various transport authorities across India. The company's shares are listed on BSE (scrip code 532439) and NSE (symbol OLECTRA).
The filing was signed by P. Hanuman Prasad, Company Secretary and Head of Legal at Olectra Greentech Limited, based in Hyderabad.