Ola Electric shares fall 3% after company clarifies on FIR involving executives

Shares of Ola Electric Mobility Ltd fell nearly 3 per cent on Tuesday after the company issued a clarification on media reports regarding an FIR filed against some of its executives, including founder Bhavish Aggarwal, in connection with the death of an employee.

In its statement, the company said, "We are deeply saddened by the unfortunate demise of our colleague, Mr. Aravind and our thoughts remain with his family during this difficult time. During his tenure, Mr. Aravind never raised any complaint or grievance regarding his employment. His role also did not involve any direct interaction with the company's top management, including the promoter."

Ola Electric added that an FIR was recently registered in the matter but clarified that the company has challenged it before the Karnataka High Court, which has passed protective orders in favour of Ola Electric and its officials. "It is clarified that no chargesheet has been filed against the Company or its officials," the statement said.

The company further noted that it had facilitated the full and final settlement of dues to the employee's family and was cooperating with authorities in the ongoing investigation. Ola Electric reiterated its commitment to maintaining "a safe, respectful and supportive workplace for all employees."

Addressing investor concerns, the company said that since no chargesheet has been filed, there is no legal proceeding requiring disclosure, and therefore, the matter does not constitute a material event under Regulation 30 of Sebi's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Ola Electric also stated that it is not aware of any undisclosed information that could have influenced trading activity in its shares. It reaffirmed that all material disclosures mandated by SEBI have been made to the exchanges.

On Tuesday, shares of Ola Electric closed 2.57 per cent lower at Rs 53.39. The stock market remained shut on Wednesday on account of Diwali Balipratipada.