Ola Electrical in Defect, Retail outlets of Corporate have been raid for violation of laws, bajaj auto, tvs motor

Ola Electric, one of the large electric two-wheeler companies, increased its retail stores at the end of the previous year by almost four times. Transport authorities have raided the stores in many cities of the company due to violation of rules. Ola Electrical had only online sales model at the beginning. However, in the last few months, the company has increased sales through stores.

An investigation into the Bloomberg Information has found that more than 100 out of about 3,400 stores of the company had trade certificates under the Motor Vehicle Act. This means that most of the stores of Ola Electric do not have a certification, which is required for the display, sales or test ride of un-registable two-wheelers. In view of customers complaints, transport authorities in many states have raided these stores and seized vehicles. Apart from this, questions have been asked by giving show cause notice to Ola Electric.

Under the Motor Vehicle Act, each automobile showroom including two-wheelers should have a trade certificate. Bloomberg information has been reported by some local transport officials that they are investigating Ola Electric due to alleged violations of the rules. Earlier, the company had to face difficulty due to a large number of customers’ complaints about the deficiencies in the service. The Central Consumer Protection Authority (CCPA) has investigated the matter. Ola Electric also suffered a major setback from the Karnataka High Court. A notice issued by CCPA was refused by the High Court to dismiss. This notice was given as part of the investigation against the company. In this, additional documents were sought after more than 10,000 complaints of customers regarding the company’s electric scooters.

The High Court had said that this notice has been issued by a competent investigating officer and the company will have to provide documents sought. The CCPA had initially investigated a large number of complaints against Ola Electric. The investigation indicated violations of customers’ rights, misleading advertisements and deficiencies in service.