NEW DELHI: Ministry of heavy industries (MHI) on Wednesday asked vehicle testing agency ARAI to provide details regarding alleged violations of consumer rights by Ola Electric as the firm is a beneficiary of govt incentive scheme for EVs.
MHI’s action comes close on the heels of Central Consumer Protection Authority (CCPA) slapping a show cause notice on Ola Electric for alleged violations of consumer rights, misleading advertisements and unfair trade practices.The alleged violations also include charging during free service period or warranty, delay in delivery of vehicles and in providing service/repair.
“Ola Electric is a beneficiary under the scheme whose eligibility criteria under FAME-II and PM E-DRIVE has been issued by ARAI. Therefore, you are required to provide your comments on the issue to MHI at an early date,” the ministry’s letter to the testing centre said. It also mentioned that as per two EV incentive schemes, each vehicle manufacturer is required to maintain service centres to attend customer issues and that warranty is also provided under these two schemes to all OEMs, including Ola Electric.
Earlier in the day, Union consumer affairs secretary and chief commissioner of CCPA Nidhi Khare told TOI, ” NCH (National Consume Helpline) had been receiving complaints for around a year. When the complaints were taken up with the company, those were not addressed properly.”
Under the Consumer Protection Act, CCPA can initiate “class action” when there are similar complaints that can impact ‘class’ of consumers. As per CCPA notice, there were over 10,600 complaints against the EV two-wheeler maker.
The law empowers the CCPA to order recall, reimbursement of prices of goods or services to purchasers, and also discontinuation of practices which are unfair and prejudicial to consumers’ interest.
Sources said CCPA sought response in 15 days.