Bhavish Aggarwal got notice due to misleading advertisement of Ola Electric, shares fell by 6 percent

Bhavish Aggarwal-owned Ola Electric Mobility on Monday received a notice for misleading advertisements and unfair trade practices. Due to this, Ola Electric Mobility shares fell by 6 percent in early trade on Tuesday. However, due to good sentiments of the stock market, recovery was also seen later.

This notice has been sent to Ola Electric by the Central Consumer Protection Authority. The company’s stock on BSE was trading 6.17 percent down at 85.21 in early trade. However, later Ola’s shares showed a good recovery.

What is the whole matter of misleading advertisement

Ola Electric Mobility said in a regulatory filing on Monday that it has received a show cause notice from the Central Consumer Protection Authority (CCPA) for alleged violation of consumer rights, misleading advertisements and unfair trade practices. The CCPA has given the company 15 days to respond to the show cause notice.

However, Ola has also given clarification on this matter. He says that the show cause notice will not have any effect on the financial, operational or other activities of the company. Also, the show cause notice of the authority does not impose any penalty or financial penalty.

Bad days for Ola Electric

Shares of Ola Electric Mobility fell by about 10 per cent on Monday. The reason for this was said to be the questions raised on the service quality of the electric scooter on social media. Ola Electric CEO Bhavish Aggarwal also had a verbal war with standup comedian Kunal Kamra regarding this.

Ola Share Price

Ola Electric Mobility was listed in August this year at an issue price of Rs 76. It immediately doubled from its issue price and made a high of Rs 157.4 after listing. However, the stock is down 46 per cent from those levels since touching the all-time high. Ola Electric is now losing market share to legacy auto players like Bajaj Auto and TVS Motor as they are increasing their dominance in the EV space.