Ola Electric said that it has received a request for additional information from the CCPA on January 10
The CCPA first issued a show cause notice to Ola Electric in October last year, and followed it up with another notice seeking further information in December 2024
The EV major is being probed by the consumer protection body over allegations of delays in providing service and deliveries, defective vehicle sales, and other customer complaints
The Central Consumer Protection Authority (CCPA) continues to tighten its noose around electric vehicle (EV) maker Ola Electric. The watchdog has now shot off a third letter to the listed EV startup seeking more information in connection with an investigation into the company.
“In continuation of the earlier letter received from the Central Consumer Protection Authority, dated December 04, 2024 by Ola Electric
Mobility Limited, we would like to inform you that the company has received further request for information via email dated January 10, 2025,” the EV maker said in a filing with the exchanges.
Ola Electric is being probed by the consumer protection body over allegations of delays in providing service and deliveries, defective vehicle sales, and other customer complaints.
The company also said in the filing that the latest notice will have “no impact” on the financial, operational or other activities (in monetary terms) of the company.
It is pertinent to note that this is the third notice issued by CCPA to the company. The watchdog first issued a show cause notice to the Bhavish Aggarwal-led company in October last year, and followed it up with another notice seeking further information in December 2024.
The latest development comes just days after the Karnataka High Court (HC) rejected Ola Electric’s petition to quash the notice issued by the CCPA, which sought additional documents from the company as part of the probe into the EV maker.
As if this was not enough, the company’s firefighting efforts have also not gone down well with regulators. Amid piling consumer complaints, markets regulator SEB also issued an “administrative warning” to the EV maker earlier this week for announcing material information related to the expansion of its dealer network on social media before filing the same with the exchanges.
Founder, chairman and managing director Aggarwal announced on X last month that the company would open 3,200 new stores, expanding its existing network of showrooms and service centres to 4,000.
Meanwhile, the slew of controversies have taken a toll on the company’s stock. Shares of Ola Electric are trading 11.75% lower on a year-to-date (YTD) basis on the BSE. The stock is also trading nearly 4% lower than its initial public offering (IPO) issue price of INR 76.
The company is also facing intense competition in the two-wheeler EV market. TVS Motor and Bajaj Auto were hot on Ola Electric’s tail in 2024, and overtook the company’s market share in December.
Shares of Ola Electric closed Friday’s trading session 2.95% lower at INR 73.42 on the BSE.
