Ola Electric Receives CCPA Notice After Over 10,000 Complaints on Service Issues

Bhavish Agarwal's company, Ola Electric, may face challenges following a series of complaints regarding alleged issues with Ola electric bikes and lapses in service standards. The Central Consumer Protection Authority (CCPA), which operates under the Ministry of Consumer Affairs, has ordered a detailed investigation into the matter.

CCPA Chief Commissioner and Consumer Affairs Secretary, Nidhi Khare, provided information on Thursday, stating that the Bureau of Indian Standards (BIS) chief has been tasked with examining the issue. Appropriate steps will be taken following the report, which was ordered on November 6, with a submission deadline set for 15 days.

Also Read | CCPA orders detailed probe into Ola Electric over consumer complaint resolution process.

Between September of last year and August this year, the Ministry’s National Consumer Helpline received over 10,000 complaints concerning alleged defects and poor service in e-scooters. Of these, more than 3,300 complaints were related to service delays, while approximately 1,900 involved delays in the delivery of new vehicles. Around 1,500 customers reported that promises made by the company were not being fulfilled.

In response to these complaints, the CCPA issued a notice to Ola Electric on October 7, addressing several concerns, including violations of consumer rights. Ola Electric responded on October 21, claiming that 99% of customer complaints had been resolved. CEO Bhavish Agarwal stated last week that “most complaints were minor issues, such as parts loss or lack of customer knowledge about the software."

However, after contacting some of the customers who had filed complaints, the CCPA found that most issues remained unresolved. Consequently, the CCPA requested the BIS chief to conduct a thorough investigation.

Status of Ola Electric Shares

Ola Electric’s shares were listed at Rs 76 on August 9, reaching a high of Rs 157 on August 20. The company’s stock closed at a low of Rs 69.62 on November 14.