“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,” Ola Electric said in an exchange filing on Friday.
This comes days after the Karnataka High Court granted the Bhavish Aggarwal-led firm a six-week extension to submit its response to the CCPA. The CCPA first issued the show-cause notice to Ola Electric on October 8, 2024 over alleged consumer rights violations, misleading advertisements, and unfair trade practices.
In its response on October 21, the company claimed it had resolved 99.1% of the 10,644 complaints it had received. However, on December 4, the CCPA sought additional documents and information, giving the company 15 days to respond.
Ola Electric stated that the latest directive would not impact its financial, operational, or other activities.
The Bengaluru-based company is already grappling with several challenges, including top-level management exits and consumer complaints about vehicle quality and after-sales support. On December 27, chief technology and product officer Suvonil Chatterjee and chief marketing officer Anshul Khandelwal resigned, adding to a series of senior executive departures across Ola’s three entities: Ola Electric, its AI venture Krutrim, and its ride-hailing platform Ola Cabs.
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Earlier this week, the Securities and Exchange Board of India issued a warning to Ola Electric for breaching disclosure regulations after CEO Aggarwal announced its expansion plans on social media before notifying stock exchanges.The company is also grappling with a shrinking share in the growing electric two-wheeler market. In December, its market share declined to 19.5%, dropping over five percentage points from the previous month.
Shares of Ola Electric closed at Rs 73.4 on the BSE on Friday.
