New Delhi — Ola Electric has been served a show cause notice by the Central Consumer Protection Authority (CCPA) alleging breaches of consumer rights, deceptive advertising, and unfair trade practices, as disclosed in a regulatory filing by the company.
According to Ola Electric’s filing, the company received the notice via email on October 7, 2024. The CCPA has mandated a 15-day period for Ola Electric to present its response to the allegations. The company has committed to addressing the notice within the stipulated timeframe, providing all necessary supporting documentation.
This regulatory action follows a public disagreement between Ola Electric founder Bhavish Aggarwal and stand-up comedian Kunal Kamra on the social media platform X (formerly Twitter). The dispute arose over concerns related to the after-sales service and quality of Ola Electric’s scooters. Kamra highlighted the challenges faced by consumers, particularly daily wage workers who rely on two-wheelers, by responding to a post from Aggarwal that showcased Ola’s gigafactory with numerous scooters awaiting service.
In his critique, Kamra questioned the responsiveness of Indian consumer voices and tagged Union Road Transport and Highways Minister Nitin Gadkari, as well as the Department of Consumer Affairs’ official handle, seeking accountability. He encouraged other dissatisfied customers to share their experiences publicly.
Aggarwal retorted by inviting Kamra to assist Ola Electric, offering financial incentives for promoting the company or suggesting he remain silent to allow Ola to focus on resolving customer issues. Aggarwal assured that Ola is rapidly expanding its service network and working diligently to reduce service backlogs.
The show cause notice from the CCPA underscores the increasing scrutiny companies face regarding consumer protection and fair business practices in India. As Ola Electric navigates this regulatory challenge, the outcome may have significant implications for its reputation and operational practices.
