Government To Probe Ola Electric Over Service And Product Standards

Probe on Ola Electric: top product certification agency of India, Central Consumer Protection Authority (CCPA) will be investigating Ola Electric. electric scooter manufacturer will be investigated for deficiency in service standards and product issues, India's consumer affairs secretary told Reuters on Thursday. Last month, Central Consumer Protection Authority (CCPA) sent Ola Electric a notice seeking an explanation from SoftBank-backed company after consumer rights agency received an unusually high 10,000 complaints. It reflected a widespre dissatisfaction with electric scooter's service quality.

Why is CCPA probing Ola Electric?

CCPA issued a show cause notice to Ola Electric and cited misleing vertisements, violation of consumer rights, and unfair tre practices. authority gave a period of 15 days to electric two-wheeler manufacturer to respond to notice. Ola in a regulatory filing confirmed that company provided all clarifications. 

Ola, India's top e-scooter maker, responded that it h resolved 99.1 per cent of complaints. After reviewing that response, CCPA has now asked Bureau of Indian Standards (BIS) to conduct a detailed investigation into matter, Consumer Affairs Secretary Nidhi Khare said on Thursday.

Ola Electric did not immediately respond to a Reuters email seeking comment. complaints were mostly for "minor" issues, Ola's founder Bhavish Aggarwal said on an earnings call last week. "Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with software used," Aggarwal said.

rising complaints and ensuing regulatory scrutiny have cast a show on electric-scooter manufacturer, following its stellar market debut in August. Ola Electric's shares are down about 7.6 per cent from ir listing price of Rs 76. On day, its shares were down about 1 per cent, while auto stocks. NIFTYAUTO h risen 0.5 per cent.
 

(with agency inputs)