Bhavish Aggarwal, CEO of Ola Cabs, and founder of Ola Electric, poses with Ola electric scooters. File photo
| Photo Credit: Reuters
The Central Consumer Protection Authority has slapped a Show Cause Notice on Ola Electric Mobility Ltd for alleged violation of consumer rights, misleading advertisement and unfair trade practices, Ola Electric Mobility said.
“We wish to inform you that the company has received Show Cause Notice from the Central Consumer Protection Authority,” the company informed the stock exchanges.
Also Read:Ola Electric shares tank 8% after CEO’s spat with comedian over ‘service deficiencies’
“The Central Consumer Protection Authority has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond within the given timeframe with the supporting documents,” it added.
The company received the Show Cause Notice vide email on October 7, 2024.
“Currently, the Show Cause Notice has no impact on financial, operational or other activities of the company. Furthermore, the Show Cause Notice which is issued by Central Consumer Protection Authority does not impose any penalties or financial fines,” it informed the exchanges.
Shares of Ola Electric Mobility plunged 6% after the show cause notice.
The stock of the company fell 6.17% to trade at 85.21 apiece, extending the losses in the fourth straight session on the BSE.
On the NSE, it slumped 5.30% to ₹86 per piece.
The 30-share BSE Sensex jumped 407.31 points or 0.50% to 81,457.31 while NSE Nifty rose 145.35 points or 0.59% to 24,941.10.
(With PTI inputs)
Published – October 08, 2024 10:30 am IST