Ola Electric shares are expected to show further weakness after the company received a show cause notice from the Central Consumer Protection Authority (CCPA) over alleged violations of consumer rights, misleading advertisements, and unfair trade practices. The company has been given 15 days to respond.
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Ola Electric stated that the notice does not affect its financial or operational activities and confirmed that no penalties or fines have been imposed. The company plans to provide the necessary documents to the CCPA within the specified timeframe.
On Tuesday, Ola Electric shares dropped by 6.18%, hitting a low of Rs 85.21. This marks a 46% decline from its recent peak of Rs 157.53 on August 20. The stock has also been in the spotlight due to a public exchange between its CEO Bhavish Aggarwal and comedian Kunal Kamra over service issues with Ola EV scooters.
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Data from the National Consumer Helpline shows that between September 2023 and August 2024, Ola received 10,644 complaints, with 3,389 related to service delays and 1,899 involving delayed vehicle deliveries.
In response, Ola Electric has launched its ‘BOSS’ festive campaign, offering its S1 portfolio starting at Rs 49,999, with additional festive benefits worth up to Rs 40,000.