Tue Oct 08 09:11:54 UTC 2024: ## Ola Electric Faces Consumer Protection Scrutiny, Stock Plunges
**New Delhi, India:** Ola Electric Mobility, the electric vehicle manufacturer, is facing regulatory scrutiny after receiving a show-cause notice from the Central Consumer Protection Authority (CCPA). The notice alleges violations of consumer rights, misleading advertising, and unfair trade practices.
Ola Electric shares plummeted by 6.18% on Tuesday morning, hitting a low of Rs 85.21, marking a 46% drop from its recent high of Rs 157.53. The company, however, maintains that the notice has no immediate impact on its financial or operational activities and denies any penalties or financial fines.
The CCPA has given Ola Electric 15 days to respond to the show-cause notice with supporting documents. This comes amid mounting customer complaints about service issues with Ola e-scooters. According to the National Consumer Helpline, over 10,644 complaints have been filed since September 2023, with a significant portion related to delays in service and deliveries.
Despite the challenges, Ola Electric recently launched its “BOSS – Biggest Ola Season Sale” campaign, offering discounted prices and festive benefits on its S1 range of e-scooters. The company hopes to attract customers with these offers, despite facing mounting pressure from consumer protection authorities.
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