Ola Electric share prices opened more than 5% lower on Tuesday. The stock has seen a downward trend of nearly 11% over the past week and 17% over the past month. On February 3^rd the Central Consumer Protection Authority (CCPA) sent a show cause notice to Ola Electric “alleged violation of consumer rights, misleading advertisement and unfair trade practices.”

The National Consumer Helpline Number received 10,664 complaints in the last 11 months. Among them, 3,389 relate to the delay in providing services to the e-scooters, 1,899 relate to the delay in delivering new vehicles and 1,459 relate to the unfulfilled service promises. Other complaints include vehicle defects, improper redressal of issues, misleading advertising, and non-refund in booking cancellations.

Several consumers have taken to platform X to express the issues they face. Some of them are criticizing the product's substandard quality and the services' irregularities.

The company founder Bhavish Aggarwal has engaged in a keyboard war with Comedian Kunal Kamra on the social media platform X (formerly Twitter). While Kamra called out the troubles of the consumer, “two-wheelers are many daily wage workers lifeline” demanded a hasty solution from the company whereas already agitated Bhavish attacked Kamra calling him a failed comedian. The netizens quickly got into two separate camps to share their respective views.

The company has disclosed the notice received by Ola Electric from the CCPA in its regulatory filing on 7 October 2024 to both BSE and NSE. The CCPA has provided a timeline of 15 days for the Company to respond to the show cause notice. The company has declared that it will file a reply to the show cause notices before the CCPA. The notice has no impact on the financial, operational or other activities of the company, furthermore, it does not impose any penalties or fines on the company.