The Consumer Protection Authority issued a show-cause notice to Ola Electric. The company revealed this development in a regulatory filing on October 7, notifying both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Ola Electric now faces scrutiny over the notice and is expected to respond.
Ola Electric issued a show cause notice by the Central Consumer Protection Authority (CCPA) following a series of consumer complaints regarding the company’s services. The notice revealed by the company in a regulatory filing submitted to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on October 7.
The CCPA issued the notice in response to a large number of complaints lodged by consumers, which covered a range of service-related issues. Key concerns raised include delays in the delivery of vehicles, failure to provide services as promised, and defects in the vehicles sold by the company.
A detailed analysis of the complaints highlights that a significant portion of the grievances are related to service delays, with 3,364 complaints regarding slow or unfulfilled service and repairs. Additionally, 1,899 complaints were linked to delays in vehicle deliveries, while 1,459 grievances pertained to promised services that were never provided. Other issues raised by consumers include vehicle defects, inadequate resolution of complaints, misleading advertisements, and instances where booking cancellations did not result in refunds.
The issuance of this show cause notice places Ola Electric under scrutiny, as it will now have to address these complaints and justify its service practices to the CCPA.
The Central Consumer Protection Authority (CCPA) has given Ola Electric a 15-day deadline to respond to the show cause notice and provide the necessary documentation to address the consumer complaints. Ola Electric confirmed that it will comply with the CCPA’s request and submit the required information within the specified timeframe.
This disclosure was made as part of a regulatory filing under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing ensures that significant information about the company’s operations and obligations is communicated to the public and the relevant stock exchanges, in this case, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
In a related development, Ola Electric recently come under public scrutiny following a social media dispute between its founder, Bhavish Aggarwal, and stand-up comedian Kunal Kamra.
Read Also: 5% Service Charge Limit| Karnataka HC Rejects Ola & Uber’s Appeals
The spat revolved around criticisms of the quality of Ola Electric scooters, shortcomings in the company’s service, and unresolved consumer grievances. Kamra raised concerns about issues faced by consumers, which sparked a wider conversation about the company’s product reliability and customer support.
With the show cause notice now in play, Ola Electric faces increased pressure to resolve these issues and provide a satisfactory explanation to the CCPA regarding the numerous complaints lodged against the company.
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE
