According to the most recent report, it has been stated that Ola Electric is expected to repay around Rs 130 crores to its clients without any plagiarism.
How Did This Happen?
The Ministry of Heavy Industries launched an investigation into the overpricing of the off-board charger, prompting the company to inform the government that it will cover the cost of reimbursement.
A government official stated that the Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric.
This decision was made after the company informed ARAI via a letter dated April 30, 2023, that they will voluntarily reimburse the cost (around Rs. 130 crore) of the off-board charger to all customers who had purchased it as an accessory while buying an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023.
Ola Electric Founder and CEO Bhavish Agarwal has recently stated that the company will comply with the government’s requests, including the ongoing investigation and subsidy suspension.
Why Would This Happen?
The company has stated that it is in communication with the government to address any outstanding matters regarding the ongoing investigation.
The Ministry of Heavy Industries has been examining Hero MotoCorp, TVS Motor Company, Ather Energy, and Ola Electric after receiving complaints from whistleblowers.
The complaints alleged that these companies were charging customers more than the Rs. 1.5 lakh limit under the central government’s FAME scheme, which is necessary to qualify for subsidies.
These companies had argued that the added charges were for extra software features and the off-board charger.
Ather Energy and Ola Electric have reportedly lowered the prices of their electric scooters to comply with the scheme’s eligibility requirements.
For instance, Ola Electric has recently reduced the cost of its electric scooter from Rs. 1.39 lakh to Rs. 1.24 lakh, which includes the price of the charger and software features.
Additionally, Ola Electric is expected to provide a certified statement to ARAI once all customers have received their due reimbursement.
