The central government has issued a show-cause notice to Ola Electric after receiving thousands of customer complaints about the quality of its best-selling electric scooters, according to people familiar with the matter. The move was taken in response to over 10,000 complaints received on the national consumer helpline last year, the officials added.
Sources who spoke to NDTV Profit on condition of anonymity said the show cause notice was issued to billionaire founder Babish Agarwal and his company for allegedly violating consumer protection laws.
Ola Electric confirmed receipt of the show cause notice in an exchange filing on Monday night.
A stock exchange filing signed by Chief Financial Officer Harish Abhichandani said:・A cause notice has been issued.” “The company plans to file a reply to the show cause notice with the Central Consumer Protection Authority.”
The exchange filing added that the show cause notice currently has no impact on the company’s financial, operational or other activities. No penalties or fines will be imposed.
Ola Electric has been accused of delay in service, late delivery of vehicles and non-fulfillment of promised services, the officials cited earlier said, adding that the Central Consumer Protection Authority has issued a complaint against the company’s electric scooters. It added that related manufacturing defects, overcharging and component defects are also being investigated.
