Customers Who Purchased EV Charger From Ola Electric To Receive Refund Of Rs 130 Crores

The company has notified the government that they will refund the cost of the off-board charger in response to the Ministry of Heavy Industries' investigation into overpricing.

May 3, 2023
4:50 PM

Electric two-wheeler manufacturer, Ola Electric, has agreed to reimburse approximately Rs 130 crore to customers in response to the Ministry of Heavy Industries' probe for overpricing. The company will reimburse the cost of the off-board charger for all customers who have bought the accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023. The Automotive Research Association of India (ARAI) will not take any further action against Ola Electric. Founder and CEO, Bhavish Agarwal, has stated that the company will do whatever the government asks to resolve all issues. Hero MotoCorp, TVS Motor Company, Ather Energy, and Ola Electric have been scrutinized under the FAME scheme for charging customers over the threshold. Was this response better or worse? Better Worse Same

Ola Electric, the electric two-wheeler manufacturer, has agreed to reimburse approximately Rs 130 crore to its customers. Sources suggest that the company has responded to the probe initiated by the Ministry of Heavy Industries for overpricing by stating that it will reimburse the cost of the off-board charger.

A government official stated that the Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company has announced that it will reimburse the price of the off-board charger to all customers who have bought the accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023.

Bhavish Agarwal, the Founder and CEO of Ola Electric, recently stated that the company will do whatever the government asks it to do in response to the government’s probe and suspension of subsidies. The company has confirmed that it is in touch with the government to resolve all issues.

Following whistleblower complaints, Hero MotoCorp, TVS Motor Company, Ather Energy, and Ola Electric have been under scrutiny by the Ministry of Heavy Industries. According to the complaints, all four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government’s FAME scheme for availing the subsidies. The companies had previously claimed that the additional cost was for additional software features and the off-board charger. Both Ather Energy and Ola Electric have reduced the cost of their electric scooters to meet the scheme’s eligibility criteria.

Ola Electric has recently lowered the cost of its electric scooter from Rs 1.39 lakh to Rs 1.24 lakh, which includes the cost of the charger and software features. The company is also expected to submit a duly certified statement to ARAI when all customers have received the amount due to them.

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