Ola Electric in problem, Gets Third Letter From CCPA for Information on Service complaints

Ola Electric, one of the big electric two-wheeler companies, is facing difficulties due to a large number of complaints from customers regarding deficiencies in service. The Central Consumer Protection Authority (CCPA) has again sought information in this regard from the company.

Last month also CCPA Ola Electric Had sent a letter asking for this information. The company has given this information in a filing to the stock exchange. However, it has also been told that this will not have any financial impact on Ola Electric. The Karnataka High Court had given the company six weeks to respond to the CCPA’s previous letter.

Earlier, Ola Electric was warned by the markets regulator for violating the rules related to disclosure. The warning came as the company’s chief, Bhavish Aggarwal, made an announcement on social media about important information before filing it with the stock exchange. The Securities and Exchange Board of India (SEBI) had sent an email regarding administrative warning to the company. Ola Electric also got a big blow from the Karnataka High Court. The High Court had refused to dismiss a notice issued by CCPA. This notice was given as part of the investigation against the company. In this, additional documents were sought after more than 10,000 complaints from customers regarding Ola Electric’s electric scooters.

The High Court had said that this notice has been issued by a competent investigating officer and the company will have to provide the sought documents. The CCPA had conducted a preliminary investigation into a large number of complaints against Ola Electric. In this, violations related to violation of customers’ rights, misleading advertising and deficiencies in service were found. After this the CCPA had directed its Director General of Investigation to investigate it. The company’s argument was that the officers issuing the notice were not authorized under the Consumer Protection Act. The company had said that the officer who issued the notice did not hold the post of Director or Additional Director. On this, the High Court clarified that the Director General has authorized an officer of the rank of Senior Director to conduct the investigation.