SUMMARY
- CCPA issues show-cause notice to Ola Electric over unfair trade practices, deceptive ads, and consumer rights violations.
- CEO Bhavish Aggarwal and comedian Kunal Kamra clash publicly over Ola’s after-sales service concerns.
- Ola Electric’s Q1 FY25 net loss rises 30% to ₹347 Cr, despite 32% revenue growth.
The Central Consumer Protection Authority (CCPA) has given the EV giant Ola a show-cause notice, following a public altercation between comedian Kunal Kamra and Ola Electric CEO Bhavish Aggarwal on the latter’s after-sales services.
The company stated in an exchange filing that it has been instructed by the consumer monitor to reply to the show cause notice in a maximum of 15 days. According to the corporation, Ola Electric is accused of unfair trade practices, deceptive advertising, and violating consumer rights.
The filing states, “We wish to inform you that the Company has received a show cause notice from the Central Consumer Protection Authority. The CCPA has provided a timeline of 15 days for the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents.” The firm assured that the notice will not affect the company’s operations, finances, or other business-related activities.
This occurred one day after Aggarwal and Kamra got into a verbal altercation. It all began when Kamra shared a picture of some Ola scooters that were sitting outside of a dealership and collecting dust on X. Kmara remarked, “Do Indian consumers have a voice? Do they deserve this? Two-wheelers are many daily wage workers’ lifeline.” To this, Aggarwal responded by accusing Kamra of receiving payment to disparage the business, claiming Ola Electric is growing its network and will soon get rid of the backlog. To which comedian called Aggarwal “arrogant, substandard,” in response the CEO of Ola Electric retaliated by promising to pay Kamra “better” than his “flop shows.”
The firm‘s shares plunged as much as 9% during the early trading hours of October 8 following Aggarwal’s social media feud and a drop in the larger Indian markets. At ₹90.82, the stock ultimately ended the day 8.31% lower on the BSE.
Ola Electric’s net loss increased by 30% from ₹267 crore in Q1 FY24 to ₹347 crore in Q1 of the financial year 2024–25 (FY25). Operating revenue increased 32% from ₹1,243 crore in Q1 FY24 to ₹1,644 crore during the reviewed quarter.
