Ola founder Bhavish Aggarwal gets relief from Bombay High Court, will not be arrested; stock returns

News Topical, Digital Desk : The Bombay High Court on Tuesday stayed the detention order and warrant issued by the South Goa Consumer Disputes Redressal Commission against Bhavish Aggarwal, founder and CEO of Ola Electric Technologies Pvt Ltd (Ola Share Price). The Consumer Commission had issued a bailable warrant against Aggarwal. The Commission had said that despite prior notice, Aggarwal did not appear. When the matter came before the Bombay High Court, the court issued a notice to the Commission and said that prima facie it appears that by issuing such a warrant, it has misused its powers.

What did the High Court say?

The High Court said, “Only after looking at the scheme of the Consumer Protection Act, when an order for compensation is passed and the same is sought to be enforced under Section 71 of the Act, the State Commission has the power to issue a detention warrant for enforcement of its order like a civil court under Section 71 of the Act.”
The court further said, “A consumer forum or the Commission has no power to issue such a warrant during the hearing of a complaint by any party to a dispute.”

Ola issued a statement

Following the relief from the court, Ola issued a statement saying that the High Court noted that the District Consumer Commission had exceeded its powers under the Consumer Protection Act when issuing the warrant.
The company said, “The Hon'ble High Court has stayed the warrant issued by the District Consumer Commission, South Goa. Furthermore, the Hon'ble Court found that the Commission had exceeded its jurisdiction under the Consumer Protection Act by issuing the warrant.”

What is the whole matter?

The case relates to a complaint by Pritesh Chandrakant Ghadi, who complained about problems with his Ola S1 Pro second-gen scooter, even after repairs. The complainant is seeking a refund of ₹1.47 lakh, as well as ₹50,000 for harassment and mental anguish.

Continuous decline in the stock

• Meanwhile, Ola shares continue to fall. However, they are still up 2% in pre-opening trading on Wednesday.
• It has slipped more than 11 percent in the last one week.
• The stock has given a negative return of 24.25% in one month.
• The stock is down over 34% in 3 months.
• The stock has slipped 35% in 6 months.

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