Ola Electric Faces Regulatory Scrutiny Over Consumer Rights Violations

Ola Electric Faces Regulatory Scrutiny Over Consumer Rights Violations
The Central Consumer Protection Authority of India has issued a show-cause notice to Ola Electric, citing alleged consumer rights violations, including misleading advertisements and unfair trade practices. The company has 15 days to respond, as it grapples with escalating customer complaints—over 80,000 monthly—regarding its scooters and service quality. Analysts from HSBC reported that Ola's service centers are overwhelmed and inadequately equipped to handle the volume of requests. Consequently, Ola's shares plummeted 9.1% on Monday, marking a significant decline since its IPO.