Consumer Commission orders Ola Electric to refund Rs 1,63,986 to customer—Here's why

The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, has ordered Bhavish Aggarwal-led Ola Electric to refund Rs 1,63,986, with additional interest, and pay Rs 10,000 in compensation to a Hyderabad-based customer over a defective electric scooter.

This comes after a Hyderabad-based advocate K. Sunil Chowdary lodged a complaint following persistent issues with his Ola S1 Pro, which he purchased in June 2022.

Despite purchasing an extended warranty and Ola Care Plan for Rs 6,299 and Rs 3,539, Chowdary reported that the scooter’s charger was faulty from the beginning, and unresolved battery issues rendered the vehicle unusable since August 2023.

He also reported that the scooter remained with the company since August 2023 without any resolution.

After Ola Electric failed to respond to his October 2023 legal notice or attend hearings, the commission ruled in favour of the complainant, stating that Ola’s failure to address these defects constituted a service deficiency.

As per the order, Ola Electric must issue the refund along with 9% interest accruing from August 2023. Notably, If the payment is delayed beyond 45 days, the interest rate will increase to 12% per annum.

Last month, The Central Consumer Protection Authority (CCPA) issued a Show Cause Notice to Ola Electric for alleged violations of consumer rights, misleading advertisements, and unfair trade practices.

A week after this notice, the company claimed that it resolved 99.1% of the 10,644 complaints received from customers. The Bengaluru-based EV giant also asserted that it has a robust system in place to address consumer grievances.

However, shortly after this claim, one of the company’s scooters caught fire outside its showroom in Bengaluru, Karnataka.