 "Amid rising service complaints, CCPA issues notice to Ola Electric")
Amid rising consumer complaints regarding service deficiencies, the Central Consumer Protection Authority (CCPA) has reportedly issued a show-cause notice to Ola Electric. The notice, issued on October 3, cites the 'potential violation' of key provisions of the Consumer Protection Act, 2019.
According to reports, the Department of Consumer Affairs-run National Consumer Helpline has received 10,644 complaints against Ola e-scooters since September 2023. Of these, 3,389 relate to delays in servicing e-scooters, 1,899 concern delivery delays for new vehicles, and 1,459 address services that were promised but not provided.
The notice cites violations such as unfair trade practices, misleading advertisements, and consumer rights violations. Ola Electric has been given 15 days to respond to the allegations.
The notice further adds that complaints have also been registered against unprofessional conduct on the part of the company and improper closures of the lodged complaints. There was no official statement from CCPA on this till publishing.
This comes amid the recent public spat between Ola's founder Bhavish Aggarwal and popular comedian Kunal Kamra. The controversy erupted when Kamra criticised Ola's poor handling of two-wheeler electric vehicles, mostly of which, Kamra said, belonged to the daily wage workers.
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Ola Electric which debuted on the stock market on August 9, today fell nearly 9 per cent at an intra-trade low of Rs 90.26. In Q1 FY25, the company reported a net loss of Rs 347 crore, despite increased revenue from operations.