Bhavish Aggarwal's Ola Electric receives show cause notice over rising consumer complaints

The Central Consumer Protection Authority (CCPA) has issued a show cause notice to Ola Eletric following a significant rise in the number of consumer complaints regarding its electric vehicles. The CCPA, in its notice, has cited violations of the Consumer Protection Act, 2019, which includes consumer right violations and unfair trade practices, as the reason for the notice. Ola Electric has been given 15 days to respond to the notice.

Why has CCPA issued a show-cause notice against Ola Electric?

As per reports, Department of Consumer Affairs' National Consumer Helpline has documented a total of 10,644 complaints against Ola Electric's electric scooters between September 1, 2023, and August 30, 2024. While nearly 1,899 of these complaints pertain to delays in the delivery of new vehicles, nearly 1,459 complaints are regarding unfulfilled promised services. In addition to these, the National Consumer Helpline documented nearly 3,389 complaints regarding service delays of Ola's electric scooters.

In the show cause notice, CCPA has cited a series of issues ranging from manufacturing defects in the company's electric scooters to overcharging at the service centre. In addition to these, CCPA has also cited incomplete refunds on cancellations, inaccurate billing, component issues including the battery, and recurring of issues post services, as reasons for filing a show cause notice against the Bhavish Aggarwal-owned company.

Additionally, CCPA has cited unprofessional conduct of the employees as one of the reasons for the notice.

What is Ola Electric saying about the show cause notice?

While Ola Eletric hasn't responded to the show cause notice in the public, it has sent a letter to the National Stock Exchange of India informing the organisation of the matter. In its letter, Ola Electric has confirmed that it will respond to the CCPA's notice with all the supporting documents within the given timeframe.

The company, in its letter, has also clarified that the show cause notice has no impact on the operational or financial operations of the company. It has also said that the notice does not impose any fines or penalties on the company.