The central government has issued a show cause notice to Ola Electric. The government has taken this action following complaints from thousands of consumers regarding the quality of electric scooters and has sought a response within 15 days. Ola Electric confirmed receiving the show cause notice in an exchange filing on Monday night.
According to media reports, the National Consumer Helpline has received more than 10,000 complaints in the last one year, after which the action was taken. The notice claims that company founder Bhavish Agarwal and his company Ola have committed service defects, misleading advertisements, unfair trade practices and breach of consumer protection.
The company was given 15 days to respond. After receiving the show cause notice from the CCPA on October 7, Ola Electric filed a note with the stock exchange acknowledging the notice and said it would respond within the given time frame with supporting documents. Ola in its notification also said that the show cause notice currently has no impact on the company's financials, operations or other activities. Further, the show cause notice does not impose any fine or monetary penalty
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
