Ola Electric gets 3rd CCPA notice over consumer complaints
What's the story
Leading electric two-wheeler manufacturer Ola Electric has confirmed receiving a third notice from the Central Consumer Protection Authority (CCPA). The notice is part of an ongoing investigation into over 10,000 customer complaints against the company's electric two-wheelers. The development comes after previous notices were issued in October and December 2024.
Investigation deepens
CCPA intensifies probe into alleged consumer rights violations
The CCPA has ramped up its probe into the allegations of service deficiency and violation of consumer rights by Ola Electric. The Karnataka High Court recently rejected a plea by the company to quash a notice sent by the CCPA. Justice R Devdas ruled that the notice was sent by a competent investigating officer and Ola Electric is required to submit the demanded documents.
Legal stance
Court upholds CCPA's authority in Ola Electric investigation
Upholding the CCPA's authority in the investigation, the court said it is within the investigating officer's power to issue such communication and the petitioner is obliged to furnish additional documents. The probe was launched after 10,466 complaints were filed with the National Consumer Helpline from July 2023 to August 2024. CCPA's preliminary inquiry found violations of consumer rights, misleading advertisements, and service deficiencies.
Reassurance
Ola Electric's concerns over potential reputation damage dismissed
Ola Electric had raised apprehensions that submitting documents might damage its reputation if the probe's news went public. The court rejected these apprehensions, recording the assurance of Additional Solicitor General Arvind Kamath appearing for the CCPA, that no public statements would be made by the investigating authority or CCPA in the matter. The court has given Ola Electric six weeks to submit the documents.
Regulatory warning
SEBI warns Ola Electric over disclosure violations
In a separate development, the Securities and Exchange Board of India (SEBI) has warned Ola Electric over disclosure violations. The regulatory body noted that Ola's CEO, Bhavish Aggarwal, had announced corporate moves on X before making official disclosures with the stock exchanges. According to regulations, all disclosures must first be made to the stock exchanges within 12 hours of an event or occurrence.