In response to more than 10,000 customer complaints about Ola Electric's after-sales service, the Department of Consumer Affairs is conducting an investigation. According to a source, Ola Electric has received a notice from the Central Consumer Protection Authority (CCPA) challenging the company's assertion that it has resolved 99 percent of these concerns. This comes after CCPA recently sent a notice to Ola Electric regarding an increase in consumer complaints regarding after-sales assistance.

The CCPA is currently investigating if Ola Electric's assertions that they have settled 99 percent of the complaints are true. According to reports, this action is being taken to guarantee openness and validate Ola's assertion regarding the number of problems resolved.

The CCPA's investigation of Ola Electric is a component of a broader initiative to track complaints across other businesses. Ten industries with high complaint rates are the focus of the Department of Consumer Affairs. They are attempting to determine whether these concerns are unique to the market or if they are indicative of more significant problems. Additionally, this regulatory measure is a part of an effort to improve consumer rights in the rapidly changing ride-hailing and e-commerce industries.

Chief Commissioner Nidhi Khare and the CCPA voiced their concerns on Ola's refund policy last week. In place of monetary refunds, this policy only provided future ride certificates. The CCPA determined that this method infringed on consumers' rights and failed to provide them with a genuine choice.

The CCPA has therefore directed Ola to enhance its refund procedure in order to make it more user-friendly. Additionally, Ola is now required to furnish receipts for every auto ride, something that was previously not provided. The Consumer Protection Act of 2019 deemed this lack of paperwork to be a "unfair trade practice."

Customer service at Ola Electric has come under fire. The company's market share in India's cutthroat EV industry has been impacted by this criticism. Its market share decreased from 52% in April to 27% in September. Its stock performance, which dropped from Rs 157.4 a share at introduction in August to Rs 77, also reflects this decline.

The Automotive Research Association of India (ARAI) is also looking into whether Ola satisfies the warranty and servicing standards established by the government subsidy rules. This involves determining whether Ola offers cars at legally compliant prices.