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HomeTechnologyOla Electric's shares surged after receiving notice from the government

Ola Electric's shares surged after receiving notice from the government


New Delhi . Ola Electric's shares again witnessed a decline in Tuesday's trading session. The stock had fallen to Rs 86 at the beginning of trading, but later it saw a slight recovery and by 10:44 am it was at Rs 89, down 2 percent.

Dissatisfaction is being continuously expressed by customers on social media regarding Ola Electric's EV scooters. A notice has been given to the company by the government regarding problems in the quality and service of EV scooters.

The twowheeler EV company said in a stock exchange filing that it has received a show cause notice from the Central Consumer Protection Authority (CCPA).

“CCPA has given them 15 days to respond to the show cause notice. The company will respond with supporting documents within the given time,” the company said.

The show cause notice said that it appears that many provisions of the Consumer Protection Act, 2019 have been violated by Ola Electric.

Complaints like manufacturing defects, not giving refund on cancellation of booking, problems occurring even after servicing, battery problems, overcharging etc have been taken seriously by the authority.

The National Consumer Helpline, which is run by the Ministry of Consumer Affairs, has received around 10,644 complaints related to Ola Electric since September last year.

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Nidhi Khare, secretary, department of consumer affairs, said the CCPA is looking into a large number of complaints about Ola Electric, which mainly relate to service inefficiencies.

He further said that he hopes that the company will quickly resolve the problems faced by the customers.

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Image Credit: KhasKhabar.

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