The Central Consumer Protection Authority has issued a show-cause notice to Bhavish Aggarwal-run electric-vehicle company Ola Electric, after being alarmed at growing customer complaints against it and poor conditions at its service centres across the country. The electric vehicle company has been asked to respond within 15 days of the receipt of the notice.
The regulator has taken cognisance of thousands of complaints against Ola Electric, which are growing by the day, according to reports.
It would seem like Ola Electric would be violating a few provisions under the Consumer Protection Act, 2019," the showcase notice continued to enumerate, referencing complaints from consumers regarding manufacturing defects, partial or no refunds in booking cancellations, defects recurring after servicing, overcharging and wrong invoices, and multiple issues with the battery and vehicle components.
The National Consumer Helpline, the Department of Consumer Affairs-run helpline has received 10,644 complaints since September last year regarding Ola Electric," said Nidhi Khare, Secretary of the Department of Consumer Affairs.
"The CCPA is currently looking into a large number of complaints about Ola Electric, mainly service inefficiencies. Hopefully, the company will address these issues as soon as possible and resolve the issues faced by consumers," she added.
No immediate comment came from Ola Electric on the show-cause notice.
The shares of the company dived about 9 per cent on Monday to close at Rs 90.26 apiece.
Aggrieved customers once again flooded social media platforms with a litany of problems of its flagship electric two-wheeler. The company's share has been trading about 42-43 per cent lower since touching all-time highs. The stock has seen a below-par Q2 performance due to reversal in its revenue mix, said trade analysts, who believe that the stock is currently loss-making and trading at high valuations.
The EV company is bleeding share in the Indian EV market and it lost more, in September, to 27 percent amidst rising competition as well as its crippling service centers," the company said.
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