The Karnataka High Court on Tuesday upheld a directive requiring Ola Electric to submit additional documents as part of an ongoing investigation by the Central Consumer Protection Authority (CCPA). This investigation was initiated following numerous complaints from consumers about the two-wheeler manufacturer.
Justice R. Devdas dismissed an appeal by Ola Electric to quash the CCPA’s request, affirming that the investigating officer, appointed by the CCPA’s Director General, was fully authorized to seek further documentation from the company. “At this juncture, it is well within the Investigating Officer’s power to issue such communication, and the petitioner is obliged to furnish the additional documents and records asked for,” the judge stated.
Senior Advocate Udaya Holla, representing Ola, expressed concerns during the hearing about the potential reputational damage that could arise from public knowledge of the investigation. He argued that while Ola was prepared to cooperate directly with the CCPA, it was apprehensive about providing documents to the investigating officer, who Ola contended was not authorized to conduct the probe.
The court dismissed these concerns, noting, “No prejudice will be caused to the petitioner in doing so,” and emphasized that the CCPA would ensure due process, including a personal hearing if necessary. However, the current request was deemed a routine part of the verification process under the Consumer Protection Act of 2019.
Justice Devdas highlighted that the Consumer Protection Act empowers the CCPA to direct its Director General of Investigations to probe potential violations. In this instance, the Director General had duly authorized the officer in question, validating his actions as lawful.
Additional Solicitor General Arvind Kamath, representing the CCPA, assured the court that no public statements would be made about the ongoing investigation, addressing Ola’s concerns about potential negative publicity. “The apprehension expressed by the petitioner’s counsel…has been allayed by the ASGI, who has said no such statements will be made by the IO or others,” Justice Devdas noted.
The probe into Ola Electric was triggered by a show-cause notice from the CCPA on October 12, 2024, after receiving 10,466 consumer complaints between July 2023 and August 2024. These complaints raised issues over consumer rights violations, service deficiencies, and misleading advertisements. A preliminary inquiry suggested prima facie violations, leading to the formal investigation.
The CCPA has tasked the Director General to scrutinize various aspects of Ola’s operations, including service agreements, terms and conditions, standards at service centers, and grievance redressal mechanisms. Following this, a Senior Director from the scientific cadre was appointed to lead the investigation and issued a request on December 14 for Ola Electric to provide further documents within 15 days.
