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Consumer Court Orders Refund for Defective Ola Electric Scooter

Ranga Reddy District Consumer Disputes Redressal Commission Rules in Favor of Aggrieved Consumer

The Ranga Reddy District Consumer Disputes Redressal Commission has issued a significant ruling on October 28, 2024, addressing a complaint filed by K. Sunil Chowdary against Ola Electric. The judgment brings to light alleged deficiencies in service and unfair trade practices by Ola Electric, resulting in financial, mental, and physical distress for the complainant.

Background of the Case

The complainant, Mr. K. Sunil Chowdary, purchased an Ola S1 Pro electric scooter from Ola Electric on June 26, 2022, paying a total of ₹1,63,986. This amount included the vehicle cost, an extended warranty, a one-year care plan, and a hyper charger home installation. However, the vehicle reportedly faced persistent issues:

1. Non-functional Charger: The charger was defective upon delivery and took 10 days to replace.
2. Battery Malfunction: The vehicle experienced repeated battery issues, rendering it non-functional for extended periods.
3. Inadequate Resolution: Despite numerous complaints, Ola Electric failed to address the battery issues adequately. In August 2023, the scooter was picked up by the company but was neither repaired nor returned.

Frustrated by the lack of response, Mr. Chowdary served a legal notice to Ola Electric on October 31, 2023, demanding a refund. The company failed to respond, prompting the complainant to file a case under Section 35 of the Consumer Protection Act, 2019.

Transaction ID	Date	Description	Amount (₹)	Transaction Type	Remarks
T001	26-06-2022	Purchase of Ola S1 Pro Electric Scooter	1,51,789	Debit	Vehicle purchase
T002	09-02-2023	Payment for Ola Care Plan	3,539	Debit	Warranty plan for one year
T003	04-07-2022	Hyper Charger Home Installation Payment	2,359	Debit	Accessory for scooter
T004	01-07-2023	Payment for Extended Warranty	6,299	Debit	5-year extended warranty
T005	31-10-2023	Legal Notice Issued to Ola Electric	0	Neutral	Complaint filed for a refund
T006	28-10-2024	Refund Ordered by Consumer Commission	1,63,986	Credit	Refund for scooter and accessories
T007	28-10-2024	Compensation for Mental Agony	10,000	Credit	Ordered compensation
T008	28-10-2024	Litigation Cost Reimbursement	10,000	Credit	Ordered litigation cost reimbursement

Notes:

1. Transaction Type: Tracks whether the amount was a Debit (expense/payment) or Credit (refund/compensation received).
2. Remarks: Additional notes for clarity on each transaction's purpose.
3. Interest details from the refund will be calculated from August 2023 until realization as per the court order.

Court Proceedings

Despite being notified, Ola Electric did not appear or file a defense, leading the Commission to proceed ex parte. The complainant submitted documentary evidence, including payment receipts, warranty certificates, and email communications, which substantiated his claims.

Key Findings

The Commission determined that:

• Ola Electric engaged in unfair trade practices by selling a defective vehicle and failing to rectify issues during the warranty period.
• The lack of resolution caused significant financial, mental, and physical distress to the complainant.
• The company’s failure to participate in the legal proceedings further demonstrated negligence.

Judgment

The Commission ordered Ola Electric to:

1. Refund the full amount of ₹1,63,986 with 9% annual interest from August 2023 until realization.
2. Pay ₹10,000 as compensation for mental and physical agony.
3. Reimburse ₹10,000 towards litigation costs.

Non-compliance within 45 days will result in an increased interest rate of 12% per annum from the date of default.

Implications of the Ruling

This ruling underscores the importance of consumer rights and highlights the accountability of manufacturers and service providers under the Consumer Protection Act, 2019. It serves as a reminder for companies to address customer grievances promptly and uphold the quality of their products and services.