Ola Electric In Trouble? MHI Asks ARAI To Respond To Show Cause Notice

Ola Electric is in the news for reasons tearing up the automaker's image and the sentiments of customers who have invested their money in its products or shares. The horrendous visuals of service centres of Ola Electric from across the country have surfaced on the internet, showcasing the grimy state of after-sales & service. The Ola Electric founder - Bhavish Agarwal, was recently seen in a verbal spat with the stand-up comedian - Kunal Kamra, on the social-media platform X. Now in a new development, the Ministry of Heavy Industries has written to the Director of ARAI (Automotive Research Association of India).

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In the letter, MHI is directing ARAI's attention to the Show Cause Notice issued on October 3 to Ola Electric, as multiple complaints have been received against the automaker for violating consumer rights, using unfair trade practices, and misleading advertisements. The letter further states that Ola Electric is a beneficiary of both FAME II and PM E-DRIVE schemes, which require each OEM to run service centres and offer warranties to provide strong after-sales support to consumers. The letter requests ARAI to take note of the show cause notice and offer their comments on the same.

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Talking of another electric scooter manufacturer - Ather Energy, it is also receiving a slew of complaints on social-media platform X. Ather Energy has filed Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI to raise funds through an initial public offering (IPO). The proposed IPO is a combination of a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of 2.2 crore equity shares by promoters and investors shareholders.