New Delhi: India’s EV scooter Giant Ola Electric will reportedly pay back Rs 130 crore to its nearly 1 Lakh customers.

The Government of India subsequently closed a probe against Ola Electric for charging extra money from its customers for buying off-board chargers separately from its scooters after it decided to make a refund to its customers.

Economic Times spoke to a senior government official who told that the people who had purchased Ola S1 Pro electric scooters from FY 2019-20 until March 30, 2023, are to be refunded.

The Company later releasing its statement said, “As a leader, we remain committed to putting our customers first. Therefore, setting aside the technicalities and as an example for others to follow, we have decided to reimburse the charger money to all eligible customers.”

With Ola Electric, other companies like Hero Motor, TVS Motor and Ather Energy too caught the Centre’s attention after many whistleblowing complaints. It was claimed that the companies were charging extra for additional software features and the off-board changer.

It was reported that the base of these allegations was overpricing and above the Rs 1.5 lakh threshold limit under the central government’s FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme so that they can avail of subsidies.

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Action Taken

Noticing all this, the Ministry of Heavy Industries ordered a probe for overpricing on these companies. But, things for Ola changed when a statement came from ARAI (Automotive Research Association of India)which, decided not to take any action against the electric vehicle company because it decided to pay back its customers.

“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, that, on their own volition, they will 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,” a government official told CNBC-TV18.

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Financial Aid

The Government of India provides financial support for 10 lakh electric two-wheelers under the FAME 2 incentive scheme.

Under this scheme, companies can offer a discount of up to 40% on the cost of locally manufactured vehicles and then claim subsidies from the government.

The Centre has already set up a subsidy programme worth Rs 10,000 crore only for electric two-wheelers that sells below Rs 1.50 lakh per unit.

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