The Central Consumer Protection Authority (CCPA) has issued a show cause notice to Ola Electric after a significant increase in consumer complaints regarding its e-scooters
The notice, dated October 3, flags potential violations of the Consumer Protection Act, 2019, citing service deficiencies, misleading advertisements, unfair trade practices, and consumer rights violations. Ola Electric has been directed to respond within 15 days.
Over 10,000 Complaints Lodged Against Ola Electric
The National Consumer Helpline (NCH) registered 10,644 complaints between September 1, 2023, and August 30, 2024. Service delays for e-scooters accounted for 3,389 of these complaints, while 1,899 consumers reported delayed vehicle deliveries. Another 1,459 complaints involved unfulfilled service promises. Additional issues included manufacturing defects, improper refunds, recurring defects, and battery-related malfunctions.
Nidhi Khare, Secretary of the Department of Consumer Affairs, confirmed that the CCPA is actively looking into the complaints and urged Ola Electric to resolve these issues promptly. National Consumer Helpline can be contacted via phone (1800-11-4000 , 1915), eMail (nch-ca@gov.in), website (https://consumerhelpline.gov.in), Google Play Store App, etc.
Ola Electric Stock Takes a Hit
On Monday, Ola Electric’s stock dropped nearly 9%, reaching an intra-day low of Rs 90.26. The company’s shares, which debuted on August 9, have since fallen 74% from their peak of Rs 157.40. In Q1 FY25, Ola Electric reported a consolidated net loss of Rs 347 crore, despite a 32.3% year-on-year revenue growth. The company raised Rs 6,154 crore through its IPO, which had initially seen strong investor interest with a 4.27 times subscription rate.
Twitter Users Voice Frustration Over Delayed Action
The news of the CCPA’s show cause notice prompted strong reactions on social media. One Twitter user expressed frustration over the delayed response from consumer authorities, writing, “Don’t know why National Consumer Helpline has to wait for 10k+ complaints to act. When will they learn to be proactive n give some value and respect to the Indian consumer? It’s because of the lackadaisical attitude of these offices that corporates feel emboldened to sideline consumers.”
Bhavish Aggarwal’s Social Media Spat Sparks Backlash
This notice comes a day after Ola Electric CEO Bhavish Aggarwal’s feud with comedian Kunal Kamra on Sunday. Kamra posted a picture of Ola scooters gathering dust outside a dealership, which prompted Aggarwal to accuse him of being paid to criticize the company.
The argument escalated on X (formerly Twitter), where Aggarwal deflected criticism of the company’s service issues and invited Kamra to work at an Ola service center. Aggarwal’s failure to acknowledge the rising consumer complaints added fuel to the online backlash, especially in light of reports that Ola Electric is receiving up to 80,000 complaints per month.
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