Ola Electric shares crashed after receiving notice from the government
New Delhi| Ola Electric shares again saw a decline in Tuesday’s trading session. The stock had fallen to Rs 86 at the start of trading but later saw a slight recovery and was down 2 per cent at Rs 89 near 10:44 am. Dissatisfaction is being continuously expressed by customers on social media regarding Ola Electric’s EV scooters. The government has given a notice to the company regarding the problems being faced in the quality and service of EV scooters.
The two-wheeler EV company said in a stock exchange filing that it has received a show cause notice from the Central Consumer Protection Authority (CCPA). “CCPA has given them 15 days to respond to the show cause notice”, the company said. The company will respond with supporting documents in the given time.”
The show cause notice said that it appears that several provisions of the Consumer Protection Act, 2019 have been violated by Ola Electric. Complaints like manufacturing related malfunction, not giving refund on cancellation of booking, malfunction even after servicing, many problems with battery, charging more money have been taken seriously by the authority.
The National Consumer Helpline, which is run by the Ministry of Consumer Affairs, has received around 10,644 complaints involving Ola Electric since September last year. Consumer Affairs Department Secretary Nidhi Khare said the CCPA is looking into a large number of complaints about Ola Electric, which are mainly related to service inefficiencies.
