Ola Electric has suffered a setback after the Karnataka High Court dismissed its petition to cancel a notice from the Central Consumer Protection Authority (CCPA). This notice was part of an ongoing investigation into the company following thousands of consumer complaints.
The Court’s Decision
The court, led by Justice R Devdas, upheld the CCPA’s request for Ola Electric to submit additional documents. The judge stated that the directions were issued by an authorized investigating officer with the intent of protecting consumer interests, and that the company was required to comply.
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Ola’s Arguments
Ola Electric’s counsel, senior lawyer Udaya Holla, argued that submitting these documents would publicly signal an investigation, potentially damaging the company’s reputation. However, Justice Devdas disagreed, asserting that the company would not suffer harm by providing the requested information.
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The court emphasized that if necessary, the CCPA must offer a personal hearing to the petitioner, but for now, it was only asking for documents to verify the case. Ola Electric’s lawyer also argued against submitting the documents to an investigating officer, claiming that the officer lacked the authority to carry out the investigation. The court countered, explaining that under the Consumer Protection Act, the CCPA is fully empowered to direct investigations if a company appears to be in violation of consumer laws.
