Central panel's notice to Ola after surge in complaints against EVs: Sources

The Central Consumer Protection Authority (CCPA) has taken cognisance of thousands of complaints and issued a show-cause notice to Ola Electric, sources said.

In Short

• 10,644 complaints recorded against Ola's e-scooters in a year
• Issues include manufacturing defects, delivery delays, and billing errors
• Ola Electric's stock falls 9% amid growing public criticism

The Centre has intervened to address customer complaints concerning Ola Electric's service issues, government sources told India Today's sister channel Business Today.

The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to the Bengaluru-based electric scooter manufacturer after receiving thousands of complaints. The notice, dated October 3, suggests that Ola Electric may have breached multiple provisions of the Consumer Protection Act, 2019, including those related to service deficiencies, misleading advertisements, unfair trade practices, and consumer rights violations.

The company has been given 15 days to respond.

Between September 1, 2023, and August 30, 2024, the National Consumer Helpline, managed by the Department of Consumer Affairs, recorded 10,644 complaints related to Ola's e-scooters. Among these, 3,389 cases involved delays in service, while 1,899 were related to delivery delays, and 1,459 highlighted unmet service promises.

The notice highlights several customer grievances, including manufacturing defects in the vehicles, second-hand scooters being sold, lack of refunds for cancelled bookings, recurring issues after servicing, overcharging, billing discrepancies, and frequent problems with the battery. Additional complaints pointed to unprofessional conduct and unresolved issues.

Sources also suggest that Ola Electric might have violated multiple aspects of the Consumer Protection Act. When approached, Nidhi Khare, Secretary of the Department of Consumer Affairs, confirmed that the CCPA is investigating numerous complaints against Ola Electric, primarily related to poor service. "We hope the company promptly addresses these concerns and resolves consumer issues," she said.

Ola Electric has not commented on the matter.

The company’s stock dropped nearly 9 per cent today, reaching a low of Rs 90.26. Ola Electric has faced growing public criticism over its service problems, including a bitter social media exchange between comedian Kunal Kamra and Ola's founder, Bhavish Aggarwal.