The Central Consumer Protection Authority on Monday sent a show-cause notice to Ola Electric over alleged violation of consumer rights.
The authority enforces the rights of consumers in India.
The notice gave the electric scooter manufacturer 15 days to respond to allegations of misleading advertisements, violation of consumer rights and unfair trade practices, the company said in a regulatory filing.
The action was based on 9,948 complaints from consumers received on the National Consumer Helpline between September 1, 2023, and August 30, 2024, Mint reported.
Harish Abichandani, the chief financial officer of Ola Electric, said in the filing that the company will respond to the authority within the given timeframe with the supporting documents.
This came amid mounting troubles for the Bengaluru-headquartered firm, whose share prices tanked more than 8% on Monday. This happened after its founder and Chief Executive Officer Bhavish Aggarwal got embroiled in an online spat with comedian Kunal Kamra.
The argument between Aggarwal and Kamra was sparked by Kamra’s post on Sunday, showing several scooters manufactured by Ola Electric gathering dust outside a company facility. “Do Indian consumers have a voice?” the comedian asked, accusing the company of poor servicing.
On September 18, Mint reported that the number of customer complaints Ola Electric was receiving every month had risen to more than 80,000 complaints.
Kamra also tagged Union road transport minister Nitin Gadkari in his social media post, asking if this was how Indians would embrace electric vehicles. He also invited Ola Electric customers to share their experiences with the company.
In response, Aggarwal accused Kamra of having posted a “paid Tweet”.
“Since you care so much [Kamra], come and help us out!” Aggarwal said. “I’ll even pay more than you earned for this paid tweet or from your failed comedy career.”
Aggarwal also claimed that his company was swiftly expanding its service network and would soon tackle pending service requests.
Kamra shot back, calling Aggarwal “arrogant and substandard”.
As their exchange went viral, thousands of Ola Electric customers took to the comments section to express their frustrations over delayed service and inadequate after-sales support.
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