Ola Electric Receives Third Notice from CCPA Amid Ongoing Investigation

Ola Electric Mobility Ltd., the electric two-wheeler manufacturer, disclosed receiving a third communication from the Central Consumer Protection Authority (CCPA) on January 10, 2025. This latest request for additional information stems from an investigation into over 10,000 consumer complaints lodged with the National Consumer Helpline between July 2023 and August 2024.

Regulatory Scrutiny Intensifies

The CCPA launched a probe after a preliminary inquiry revealed potential violations, including consumer rights infringements, misleading advertisements, and service deficiencies. These findings led to the Director General of Investigations being tasked with conducting a deeper investigation under Section 19(1) of the Consumer Protection Act, 2019.

Court Upholds Investigation

Earlier this week, the Karnataka High Court declined Ola Electric’s plea to quash a prior CCPA notification. Justice R. Devdas ruled that the notice was issued by a competent officer authorized by the Director General, affirming the investigation’s legitimacy. Ola Electric has been directed to provide the requested documents within 6 weeks.

Ola Electric’s Arguments Rejected

The company argued that the officer issuing the notice was not properly authorized under the Act. However, the court clarified that the Senior Director issuing the notice acted under a valid delegation of authority. It also noted that the CCPA is empowered to order an investigation based on prima facie evidence without issuing a formal order.

Background of Complaints

The complaints that initiated this investigation highlighted issues such as service centre infrastructure, grievance redressal mechanisms, and the company’s terms of service. The CCPA aims to address these concerns comprehensively through the ongoing probe.

Market Impact

Following the announcement, at 2 PM today, Ola Electric’s shares fell by around 4% trading at ₹70.49. Ola Electric has assured timely responses to all regulatory communications and stated that these developments bear no financial implications for the company as of now.

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