Ola Electric Faces Turbulent Times Amid Show Cause Notice and Social Media Spat

Ola Electric Mobility's shares dropped following a show cause notice from the Central Consumer Protection Authority over misleading advertisements and trade practices. Additionally, a public spat between Ola's CEO and comedian Kunal Kamra highlighted service quality issues, further impacting share prices negatively.

Shares of Ola Electric Mobility fell by 6% on Tuesday after the Central Consumer Protection Authority issued a show cause notice for alleged misleading advertising and unfair trade practices.

The company's stock dropped to Rs 85.21 on the BSE, continuing a four-day losing streak, and to Rs 86 per piece on the NSE. This fall occurred despite the broader BSE Sensex rising by 407.31 points and the NSE Nifty climbing 145.35 points.

Ola Electric stated that the notice has no financial or operational impact on the company. However, reports of service quality issues and a social media feud involving its CEO and comedian Kunal Kamra have intensified scrutiny on the company.

(With inputs from agencies.)