Second Suspected Employee Fraud Flagged at Ola Electric Subsidiary

Ola Electric's wholly owned subsidiary, Ola Electric Technologies Pvt Ltd (OET), has disclosed a second suspected employee fraud within its latest annual report. Statutory auditors reported the two suspected offenses, involving a total exceeding 1 crore Indian Rupees (approximately $120,000 USD), to the government via e-form filings in July 2025 and June 2026.

While one suspected fraud was detailed in Ola Electric’s FY25 annual report, the filing made in June 2026 appears to pertain to a second incident. However, the company has not disclosed specific details regarding the employees involved, the nature of the suspected frauds, or the precise amounts involved in either case. It remains unclear if the "amount exceeding 1 crore INR" refers to each offense individually or the two cases collectively.

The disclosure comes amidst ongoing concerns regarding Ola Electric's internal controls. The company's statutory auditors issued a qualified opinion on the group’s internal financial controls, citing a material weakness related to the physical verification of inventory. As of March 31, 2026, inventory worth ₹251 crore (approx. $30 million USD) was subject to this audit matter, with ₹153 crore (approx. $18.4 million USD) not having undergone physical verification during FY26.

Ola Electric experienced a significant downturn in its financial performance during FY26, with revenue from operations halving to ₹2,253 crore from ₹4,514 crore in the previous fiscal year. The company's net loss narrowed to ₹1,833 crore. Ola Electric described FY26 as a "year of structural reset," focusing on cost reduction, network rationalization, and improving unit economics.