Ola Electric‘s share price rebounded on Tuesday after opening in the red after receiving a showcase notice in another setback for the company.

What Happened: The Central Consumer Protection Authority (CCPA) has served a show cause notice to Ola Electric alleging it of violating consumer rights, running misleading advertisements and unfair trade practices. The CCPA has allowed the electric vehicle maker fifteen days to respond to the notice, the company said in a press release on Monday.

“The company will file a reply to the show cause notice before the Central Consumer Protection Authority. Currently, the show cause notice has no impact on financial, operational or other activities of the company,” the company added.

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Although the statement does not go into the details of the allegations as to how consumer rights were violated, the notice comes amid rising customer complaints. Ola remains inundated with nearly 80,000 complaints every month, with some days witnessing up to 7,000 complaints, according to media reports.

The company's service centres are reportedly grappling with the high volume of complaints, resulting in prolonged delays and customer dissatisfaction.

On Monday, Ola’s stock price dived more than 8% as CEO Bhavish Aggarwal engaged in a war of words with comedian Kunal Kamra on Twitter. This is the lowest level since it ended its listing day at around ₹92 levels.

Kamra had pointed out the escalating complaints at the firm by posting a picture of a plethora of scooters lying outside the company’s service centre. To this, Aggarwal retorted by offering to pay him more than his earnings from his “failed comedy career” if he could help resolve the issues. He added that the comedian was targeting his company because he was paid to do so.

The Bengaluru-based firm made its debut in the stock exchanges at ₹76 per share in August. Amid volatile trading, Ola Electric’s price band was revised downwards to 10% in the same month. However, its share price band has now been revised upwards to 20%. The stock can now move 20% in either direction.

Price Action: Ola Electric was up 1.64% to trade at ₹92.31 on Tuesday.

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