The central government has issued a show cause notice to Ola Electric Mobility Ltd. after receiving thousands of customer complaints about the quality of its top-selling scooters.
The notice was served to Bhavish Aggarwal, the founder of the company, following reports of over 10,000 complaints filed with the National Consumer Helpline over the past year. Ola Electric acknowledged the notice in a statement, clarifying that it was issued by the Central Consumer Protection Authority for alleged violations such as misleading advertisements and unfair trade practices.
The company confirmed that the notice does not currently impact its financial or operational activities and does not impose any penalties. However, complaints regarding service delays, delivery issues, and unfulfilled services have prompted the authority to investigate potential defects, overcharging, and faulty components.
The company has recently launched a HyperService initiative to expand its service network and address these concerns.
Despite these efforts, Ola's sales have dropped, while its competitors, including Bajaj Auto, TVS Motor, and Ather Energy, have seen growth.
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