The Central Consumer Protection Authority (CCPA) served a show cause notice to Ola Electric in relation to numerous consumer complaints regarding its services. Ola Electric disclosed the notice to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in a regulatory filing dated October 7.
The show cause notice was issued based on multiple grievances filed by consumers, including issues related to delayed vehicle deliveries, failure to provide promised services and defects in vehicles.
A breakdown of the complaints revealed that a significant number of grievances relate to delays in providing services or repairs (3,364 complaints), delays in vehicle delivery (1,899), and instances where promised services were not provided (1,459). Among these, other complaints include vehicle defects, improper redressal of issues, misleading advertisements, and non-refund on booking cancellations.
Furthermore, the National Consumer Helpline, operated by the Department of Consumer Affairs, has received 10,644 complaints since September last year, alleging service issues related to Ola e-scooters. Reportedly, the complaints are from 1st September 2023 to 30th August 2024.
Among these, 3,389 complaints, nearly one third pertain to delays in providing service for its e-scooters. Another 1,899 complaints relate to delays in the delivery of new vehicles, while 1,459 complaints were registered for services that were promised but not provided.
The Consumer Protection Authority has granted Ola Electric 15 days to respond to the notice and submit the required documents. Meanwhile, the company has confirmed that it will comply with the authority’s request within the given timeframe.
The filing was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Meanwhile, Ola founder Bhavish Aggarwal and stand up comedian Kunal Kamra had engaged in a public spat on social media over the quality of Ola Electric scooters, shortcomings in their service and unresolved consumer complaints.
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