Ola Electric Shares Drop 6% On Show Cause Notice; Down 46% From Recent High

Shares of Ola Electric Mobility opens weak on Tuesday morning after the EV maker was asked to respond to a show cause notice regarding alleged violations of consumer rights, misleading advertisement and unfair trade practices.Ola Electric Shares Drop 6% in intial trade,Down 46% From Recent High.Ola Electric said the show cause notice has no impact on financial, operational or other activities of the company for now. It further suggested that the show cause notice which is issued by Central Consumer Protection Authority does not impose any penalties or financial fines."The Central Consumer Protection Authority has provided a timeline of 15 days to the company to respond to the show cause notice. The company will respond to the Central Consumer Protection Authority within the given timeframe with the supporting documents," Ola Electric said.Ola Electric Mobility shares fell 6.18 per cent to hit a low of Rs 85.21. With this, the recent debutant has fallen 46 per cent from its recent high of Rs 157.53 level hit on August 20. The stock was recently in news due to a heated exchange between the founder and CEO Bhavish Aggarwal and comedian Kunal Kamra on X. The exchange revolved around the service issues of Ola EV scooters.The National Consumer Helpline, operated by the Department of Consumer Affairs, has received 10,644 complaints since September last year, alleging service issues related to Ola e-scooters. The complains are from 1st September 2023 to 30th August 2024, Business Today reported.