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More trouble for Ola Electric as it faces investigation over poor service standards: report
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More trouble for Ola Electric as it faces investigation over poor service standards: report

The country’s top certification agency, the Bureau of Indian Standards (BIS), is set to investigate Ola Electric for alleged deficiencies in service standards and product quality, according to Consumer Affairs Secretary Nidhi Khare.

This comes after the Central Consumer Protection Authority (CCPA) issued a notice to the SoftBank-backed electric scooter maker following a high volume of complaints.

In October, the CCPA asked Ola Electric to explain why it had received nearly 10,000 customer complaints. Ola, India’s largest electric scooter maker, responded that it had answered 99.1% of the questions raised.

After reviewing the company’s response, the CCPA has now tasked the BIS to conduct a detailed investigation into the matter, Khare told Reuters news agency.

Ola Electric founder Bhavish Aggarwal described the complaints as largely minor in nature.

“Two-thirds are really just minor issues, like loose parts or customers being unfamiliar with the software they’re using,” Aggarwal said during a recent earnings conference call.

The growing volume of complaints has brought Ola Electric under regulatory scrutiny, casting a shadow over its stock market debut in August.

The company’s shares fell around 7.6% from their initial listing price of Rs 76. At market close on Thursday, Ola Electric shares were down over 1% at Rs 70 .11 on the Bombay Stock Exchange (BSE).

Published by:

Koustav Das

Published on:

November 14, 2024