Ola Electric shares drop as MHI participates in investigation against consumer complaints

Ola Electric Mobility shares traded in the red even as the broader markets continued to trade in the green. At the last count, shares of the electric mobility major traded with a cut of over 2 per cent or Rs 2.18 at Rs 93.6 per share on the BSE.

The stock made a flat debut on the bourses at the upper price band of Rs 76 per share and since then has moved higher by 26 per cent.

As per Zee Business research inputs, after CCPA, the road transport ministry and heavy industries ministry have also started investigation into Ola. The heavy industry ministry seeks response from Ola.

The decline primarily comes as the Ministry of Heavy Industries (MHI) made a request to the Automotive Research Association of India (ARAI) for inputs on allegations of service issues confronted by users of Ola Electric.  The Ministry of Heavy Industries is investigating the allegations and asked ARAI for input as soon as possible to facilitate the investigation. 

ARAI is an autonomous body affiliated with the Ministry of Heavy Industries. ARAI is an automotive research and testing organization that serves around 1,600 customers each year, including vehicle manufacturers, engine suppliers, and small industries. 

After the CCPA issue the show cause notice earlier on October 3, Ola Electric said that it believes the notice "would not impact" its operations. The company has plans to submit a formal response within the 15-day deadline.