CCPA Issues Show-Cause Notice To Ola Electric

Since touching the all-time high, the company’s share is trading around 42-43 per cent lower. As per trade analysts, the stock is currently loss-making and trading at high valuations

Alarmed at growing customer complaints against Ola Electric and poor conditions at its service centres across the country, the Central Consumer Protection Authority (CCPA) has issued a show-cause notice to the Bhavish Aggarwal-run EV company, asking it to respond to the notice within 15 days of receipt. As per reports, the regulator has taken cognisance of thousands of complaints against Ola Electric which are growing by the day.

Ola Electric “appears to be in violation of several provisions of the Consumer Protection Act, 2019”, the showcase notice read, taking note of the complaints by consumers related to manufacturing defects, partial or no refunds on booking cancellations, recurring defects despite servicing, overcharging, inaccurate invoices, and multiple issues with batteries and vehicle components.

Moreover, the National Consumer Helpline, operated by the Department of Consumer Affairs, received 10,644 complaints since September last year related to Ola Electric.According to Nidhi Khare, Secretary of the Department of Consumer Affairs, “the CCPA is looking into a large number of complaints about Ola Electric, mainly related to service inefficiencies. We hope the company addresses these concerns promptly and resolves the issues faced by consumers”.

Ola Electric did not immediately comment on the show-case notice. The company’s shares dropped about nine per cent on Monday to close at Rs. 90.26 apiece. Aggrieved customers flooded social media platforms again with a myriad of issues with its flagship electric two-wheeler. Since touching the all-time high, the company’s share is trading around 42-43 per cent lower. As per trade analysts, the stock is currently loss-making and trading at high valuations.

The EV firm continues to lose its market share in the Indian EV market and in September, its share further dropped to 27 per cent amid rising competition as well as its crippling service centres.