Within fifteen days, the company will have to respond to the show cause notice of CCPA.
Ola Electric, which grabbed a 30 per cent market share in 2023, has again caught the attention of the Ministry of Heavy Industries (MHI) for misconduct and malpractices. The MHI has now urged the Automotive Research Association of India (ARAI) to carefully investigate and provide reports on the company’s alleged violation of consumer rights, misleading advertisement and unfair trade practices.
ARAI is the vehicle testing agency of India for the FAME and PM E-Drive schemes and provides eligibility certificates under the scheme. The MHI has ordered ARAI to conduct the investigation following a show cause notice to the company by the Central Consumer Protection Authority (CCPA) on October 3, 2024. ARAI has appeared in the center stage as it is the agency that has provided eligibility certification to Ola for the FAME II and PM E-Drive schemes.
CCPA’s report highlights that around 9,948 consumer complaints were registered against Ola Electric on the National Consumer Helpline between September 1, 2023, and August 30, 2024. The complaints range from delayed deliveries and defective vehicles to misleading advertisements and poor customer service.
The company’s two electric scooters, S1 Pro, S1 Air, and S1 X are eligible for subsidies under the government schemes. As per the regulations of both schemes, the verified companies will have to set up proper service centres to solve consumer challenges. Within fifteen days, the company will have to respond to the show cause notice of CCPA. Out of the total 9,948 consumer complaints, 1,899 are related to delayed delivery and 1,459 complaints about promised services, which weren’t provided.
