Ola Electric Mobility Pulled Up Again Amid 'Whitewashing' Of Complaints

The Central Consumer Protection Authority has sought more information from Ola Electric Mobility Ltd. amid alleged whitewashing of over 10,000 service-related complaints, according to an exchange filing on Thursday.

"We would like to inform you that the company has received further communication from the CCPA via email dated 4 December 2024, seeking additional documents and information in relation to the previous response submitted by the company," Chief Financial Officer Harish Abichandani said.

The CCPA has given Ola Electric 15 days to submit its response. This is the second time the CCPA has sought information over customer complaints stemming from after-sales and service issues.

On Oct. 7, Ola Electric informed the stock exchanges that it received a show-cause notice from the CCPA to explain within 15 days the alleged violation of consumer rights, misleading advertisement and unfair trade practices. The action follows more than 10,000 complaints received by the National Consumer Helpline in the past one year over the quality of Ola Electric scooters. On Oct. 21, Ola Electric claimed that nearly all of the complaints were resolved.

But on Nov. 14, the CCPA directed the director general of investigation, who is also head of the Bureau of Indian Standards, to investigate Ola Electric, citing concerns over alleged whitewashing of consumer grievances. An order to this effect was issued on Nov. 6 and the BIS DG had to submit the investigation report within 15 days.

"The investigation has been ordered because the company, in response to the CCPA show-cause notice, said it has resolved 99.1% of the 10,644 complaints lodged with the CCPA," Nidhi Khare, secretary at the Department of Consumer Affairs, had said then. "However, when a sample of complainants were contacted, they expressed dissatisfaction. The consumers said their grievances were only whitewashed and closed."

Shares of Ola Electric closed 0.11% higher at Rs 98.5 apiece on the BSE, compared to a 1% advance in the benchmark Sensex.