Thu Oct 10 18:10:58 UTC 2024: ## Ola Electric Faces Scrutiny from Government Over Service Deficiencies
**New Delhi:** The Central Consumer Protection Authority (CCPA) has issued a showcause notice to Ola Electric, citing numerous consumer complaints regarding service issues with the company’s e-scooters. The notice, issued on October 3rd, highlights concerns regarding delays in service, delivery of new vehicles, and fulfillment of promised services, among other issues.
The National Consumer Helpline (NCH) has received over 10,000 complaints since September 2023, with a significant portion alleging issues related to service delays, manufacturing defects, and inaccurate invoices. Consumers have also reported unprofessional conduct and improper complaint closures.
The CCPA’s showcause notice suggests potential violations of the Consumer Protection Act, 2019, including deficiencies in services, misleading advertisements, unfair trade practices, and violations of consumer rights. Ola Electric has been given 15 days to respond to the notice.
Nidhi Khare, Secretary of the Department of Consumer Affairs, confirmed the CCPA’s investigation into the complaints. She urged the company to address the concerns promptly and resolve the issues faced by consumers.
Ola Electric has acknowledged receiving the notice and stated that it will file a formal response. However, the news has impacted the company’s stock price, which fell by nearly 9% on the day of the announcement.
The scrutiny comes amidst widespread public criticism of Ola Electric’s service issues, including a public spat between comedian Kunal Kamra and Ola founder Bhavish Aggarwal on social media.
The company, which recently went public through an IPO, reported a consolidated net loss of Rs 347 crore in the first quarter of FY25, despite a 32.3% year-on-year increase in revenue. The CCPA’s investigation is expected to put pressure on Ola Electric to address the issues and regain consumer trust.
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