New Delhi, July 13 -- Maharashtra has decided to shutter nearly 90% ofOla Electric Mobility Ltd's 450 showrooms in the state as it lacks the permit to store vehicles, potentially disrupting sales in the country's largest battery-powered scooter market when the company is ceding ground to rivals.

In a 3 July letter, the Maharashtra transport department informed the office of the state's transport minister that regional authorities have taken action against those stores which did not have the required trade certificate. Mint has reviewed a copy of the letter.

Trade certificates are a regulatory requirement to keep unregistered vehicles in the showroom and facilitate sales. The state's move marks another setback for the company that grappl...