Consumer Affairs Ministry intensifies scrutiny of Ola Electric’s handling of user complaints

The Ministry of Consumer Affairs has intensified its scrutiny of Ola Electric's handling of consumer complaints, following a showcause notice issued by the Central Consumer Protection Authority (CCPA). This examination includes plans to conduct independent sampling to determine the validity of Ola Electric's claim that it has resolved 99% of customer complaints, sources told Business Today TV.

We want to be sure if the company's claims of resolving 99% problems is true and if the consumers have indeed been provided relief, the Ministry will reach out to consumers, the source added.

Ola Electric, informed the stock exchange last week that it has resolved 99.1% of complaints to customers' satisfaction.

This action came after a surge of complaints regarding Ola Electric's e-scooters, ranging from service delays to recurring product defects, with the National Consumer Helpline logging 10,644 complaints since September last year.

The central government had stepped in to address consumer complaints regarding service deficiencies of e-scooter manufacturer Ola Electric.

The Central Consumer Protection Authority (CCPA) had taken cognisance of these complaints and issued a showcause notice to Ola Electric.

The National Consumer Helpline, operated by the Department of Consumer Affairs, has received 10,644 complaints since September last year, alleging service issues related to Ola e-scooters. The complains

Of these, 3,389 complaints—nearly one third—pertain to delays in providing service for its e-scooters. Another 1,899 complaints involve delays in the delivery of new vehicles, while 1,459 complaints were registered for services that were promised but not provided.

Consumers have also complained about vehicles sold with manufacturing defects, instances of second-hand vehicles being sold, partial or no refunds on booking cancellations, recurring defects despite servicing, overcharging, inaccurate invoices, and multiple issues with batteries and vehicle components. Additionally, complaints have been raised about unprofessional conduct and improper complaint closures, among other issues.

Sources further indicated that Ola Electric may have violated several provisions of the Consumer Protection Act, including deficiencies in services, misleading advertisements, unfair trade practices, and violations of consumer rights.

The NCH, a toll-free service (1915) established by the Department of Consumer Affairs, helps consumers resolve problems with businesses and service providers.

The Ministry of Road Transport and Highways and Department of Heavy Industries are also separately investigating consumer complaints against Ola Electric.