Ola Electric issued show-cause notice by consumer rights body amid surge in user complaints

The Central Consumer Protection Authority on Monday sent a show-cause notice to Ola Electric over alleged violation of consumer rights.

The authority enforces the rights of consumers in India.

The notice gave the electric scooter manufacturer 15 days to respond to allegations of misleading advertisements, violation of consumer rights and unfair trade practices, the company said in a regulatory filing.

The action was based on 9,948 complaints from consumers received on the National Consumer Helpline between September 1, 2023, and August 30, 2024, Mint reported.

Harish Abichandani, the chief financial officer of Ola Electric, said in the filing that the company will respond to the authority within the given timeframe with the supporting documents.

This came amid mounting troubles for the Bengaluru-headquartered firm, whose share prices tanked more than 8% on Monday. This happened after its founder and Chief Executive Officer Bhavish Aggarwal got embroiled in an online spat with comedian Kunal Kamra.

The argument between Aggarwal and Kamra was sparked by Kamra’s post on Sunday, showing several scooters manufactured by Ola Electric gathering dust outside a company facility. “Do Indian consumers have a voice?” the comedian asked, accusing the company of poor servicing.

On September 18, Mint reported that the number of customer complaints Ola Electric was receiving every month had risen to more than 80,000 complaints.

Kamra also tagged Union road transport minister...

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