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Ola Electric receives third CCPA notice during ongoing probe

13 Jan 2025 , 08:54 AM

Ola Electric Mobility Ltd, an electric two-wheeler company, said on Friday (January 10) that it had received a third communication from the Central Consumer Protection Authority (CCPA) requesting additional information related to an investigation into over 10,000 consumer complaints about its electric vehicles.

This follows previous notices given in October and December 2024 as part of the ongoing investigation into suspected service faults and consumer rights violations.

This Monday, the Karnataka High Court denied Ola Electric’s request to have a CCPA notification quashed. Justice R Devdas held that the notice was issued by a competent investigative officer, and Ola Electric must give the sought records. 

The judge stated that it is well within the Investigating Officer’s power to issue such communication at this juncture, and the petitioner is obliged to furnish the additional documents and records asked for. The probe originates from 10,466 complaints submitted to the National Consumer Helpline between July 2023 and August 2024.

The CCPA had performed a preliminary investigation into these complaints and discovered infringement of consumer rights, misleading ads, and service inadequacies. Following this, the CCPA authorized its Director General of Investigations to launch an investigation under Section 19(1) of the Consumer Protection Act, 2019.

Ola Electric stated that the official issuing the notification was not authorized by the Act since he was not designated as a Director or Additional Director. 

However, the Court stated that the official, who held the title of Senior Director, had been properly authorized by the Director General to undertake the investigation. It was also highlighted that the Act allows the central authority to order an inquiry if there is a prima facie case, even if no official order is issued.

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Related Tags

  • ola electric
  • Ola Electric CCPA Notice
  • Ola Electric News
  • Ola Electric Notice
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