Ola Electric faces increased scrutiny as Central Consumer Protection Authority seeks more information
The CCPA is intensifying its investigation into Ola Electric for alleged consumer rights violations, and has requested more documents. This follows a previous notice in December.
The Central Consumer Protection Authority (CCPA), which has requested additional information from Ola Electric Mobility in relation to a December order, the company told the exchanges on January 10.
The request comes amid the CCPA's ongoing probe into the electric vehicle maker over alleged consumer rights violations. The authority had earlier sent a notice to Ola regarding consumer complaints on December 4, 2024.
According to an ANI report this signifies that the authority has “deepened its investigation” into Ola Electric.
Requests for Additional Information
“In continuation of the earlier letter received from the Central Consumer Protection Authority, dated December 04, 2024, by Ola Electric Mobility, we would like to inform you that the company has received further request for information via email dated January 10, 2025,” Ola informed the exchanges.
The filing added that this request will have no impact on the “financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible”.
Legal Proceedings Also Underway
Notably, this comes days after the Karnataka High Court granted the EV company a six-week extension to submit its response to the CCPA's show-cause notice which was issued on October 8, 2024, over alleged consumer rights violations, misleading advertisements, and unfair trade practices, according to an ANI report.
The authority is looking into consumer complaints regarding the quality of Ola's EVs and alleged shortcomings in after-sales support, the report added.
The matter is also being heard by the Karnataka HC, where the bench highlighted the seriousness of the allegations and the authority's focus on consumer protection before providing Ola with the six-week extension.
Ola Electric has been battling allegations of quality issues and inadequate customer service in an industry where maintaining consumer trust is paramount.
SEBI Warns Ola Over Disclosures
Earlier on January 8, the Securities and Exchange Board of India (SEBI) in a letter, warned Ola Electric over disclosure violations. The letter, in particular, pointed out the regulator took issue with Ola Chief Bhavish Aggarwal using Twitter to announce its corporate moves before the company published disclosures with the stock exchanges.
As per regulations, all disclosures must first be made to the stock exchanges within 12 hours of the occurrence or event. SEBI noted that this also violated stipulations that all investors be equally informed in a timely manner. “By failing to first disseminate the information on the stock exchanges and instead announcing it on a social media platform, you have failed to provide equal and timely access to information for all investors,” it added.
(With inputs from ANI)
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First Published:11 Jan 2025, 11:30 AM IST
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