Ola Electric, a producer of electric two-wheeler, has told the government that it will cover the cost of the off-board charger in response to the Ministry of Heavy Industries investigation into possible overcharging. This will result in a consumer reimbursement of almost Rs 130 Crores.
According to a government official, “the Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company announced in its letter to ARAI dated April 30, 2023 of their own accord.
Theywill reimburse the price (approximately Rs 130 crore) of the off-board charger to all customers who have bought the off-board charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023.
Ola Electric founder and CEO Bhavish Agarwal recently stated that the business will comply with any request made by the government regarding the investigation and suspension of subsidies.
When questioned about the most recent developments, the business stated that Ola Scooter continues to communicate with the government to find solutions to all problems.
The Ministry of Heavy Industries has been investigating Hero MotoCorp, TVS Motor Company, Ather Energy, and Ola Electric as a result of accusations from whistleblowers.
The accusations state that all four businesses were charging clients for using the subsidies after they had reached the FAME scheme’s Rs 1.5 lakh barrier under the central government.
The firms had originally stated that the extra cost was due to the off-board charger and additional software capabilities.
To be eligible for the programme, Ather Energy and Ola Electric both cut the price of their Electric scooter.
The price of Ola Electric scooter has just decreased from Rs 1.39 lakh to 1.24 lakh, inclusive of the cost of the charger and software features.
When all customers have received the money they are owed, Ola Electric is also likely to submit a properly certified statement to ARAI.
