Bhavish Aggarwal’s Ola Electric faces government investigation over service complaints

Bhavish Aggarwal-led Ola Electric is facing an investigation by India’s Central Consumer Protection Authority (CCPA). The regulatory authority has ordered a comprehensive probe into the electric vehicle (EV) manufacturing company over its consumer complaint redressal practices.

BIS to conduct detailed investigation

As per reports, the CCPA has now asked the Bureau of Indian Standards to conduct a detailed investigation into the matter after reviewing the company’s response.

The development comes a month after CCPA sent a show cause notice to Ola Electric against poor conditions at its service centres across the country. In a regulatory filing, the company informed the regulatory authority that it has resolved 99.91% of the 10,644 consumer complaints received so far.

However, despite Ola Electric claiming that it has resolved complaints regarding its poor after-sales service, the Department of Consumer Affairs critically examined the responses filed by the EV firm, and correlated each consumer complaint with the company’s claims. Out of the total 10,644 complaints, 3,364 pertained to slow service and repairs and 1,899 were related to delayed deliveries of Ola’s electric scooters.

Ola CEO Bhavish Aggarwal calls ‘minor’ issues

In an earnings call last week, CEO Bhavish Aggarwal said that the complaints were mostly for "minor" issues. He said “Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used”.

According to the National Consumer Helpline, managed by the Department of Consumer Affairs, it has registered 10,644 complaints against Ola e-scooters from September 1, 2023, to August 30, 2024. Of these, 3,389 relate to service delays, 1,899 pertain to delays in the delivery of new vehicles, and 1,459 involve unfulfilled promised services.