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Tag: Show Cause Notice

  • SEBI Show-Cause Notices Put Spotlight on Reliance Power and Reliance Infrastructure Shares

    Reliance Infrastructure Ltd. and Reliance Power Ltd.’s shares are under scrutiny on 7 October following their clarification of SEBI show-cause notifications regarding suspected violations of the SEBI Act of 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.

    Reliance Power stated in a filing to the BSE that it has no exposure to CLE Private Limited and that it has received a show-cause notice from SEBI regarding Reliance Infrastructure Limited’s stake in the company for suspected violations. According to Reliance Power, the business will act appropriately in this case as directed by law.

    Reliance’s Response to SEBI

    In a different filing, Reliance Infrastructure stated that it had previously revealed on February 9, 2025, that the conflict pertaining to the company’s exposure with CLE Private Limited had been resolved by consent terms filed before the Hon’ble Bombay High Court’s Mediation Centre in accordance with the Mediation Act, 2023.

    Following an eight-month delay, Reliance Infra reported that it has now received a Show Cause Notice from SEBI for allegedly violating the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, as well as the SEBI Act, 1992. According to the Mediation Act of 2023, the settlement with CLE Private Limited has already been reached and is completely operative. Reliance Infra promised to follow legal advice and take the necessary action in this case.

    Reliance Declaring CPL Issue Now Fully Resolved

    Reliance Infra had earlier on February 9 declared that its dispute with CPL was fully resolved, and as a result, INR 5,777.13 crore in assets and economic interests in CPL’s assets were assigned or transferred to the company. Additionally, INR 726 crore, the decreed amount, was converted into a secured loan with customary representations, warranties, and indemnity in the company’s favour.

    According to Reliance Infra, Reliance Infrastructure Limited and CPL submitted the consent terms under Mediation Application No. 181/2023 to the Hon’ble Bombay High Court in accordance with the Mediation Act, 2023, in order to settle their unresolved disagreements and claims. It stated that all pending claims and disputes against CPL had been fully and definitively settled for INR 6,503.13 crore.

    Quick Shots

    •Reliance Power and Reliance Infrastructure shares
    under scrutiny on October 7.

    •EBI issued notices for alleged violations of SEBI
    Act, 1992 and SEBI Regulations, 2003.

    •Reliance Power confirmed no exposure to CLE Private
    Limited (CPL).

    •SEBI notice linked to Reliance Infra’s stake in
    CPL.

    •Settlement resolved through Bombay High Court
    Mediation Centre under the Mediation Act, 2023.

    •Despite the prior resolution, SEBI issued a notice
    after 8 months.

     

  • The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising

    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.

    In an exchange filing, Ola said that the CCPA has given the company 15 days to reply to the show-cause notice. The business promised to reply to the notification and provide the necessary documentation within the allotted period.

    The CCPA has issued a show-cause notice for suspected unfair trading practices, deceptive advertising, and violations of consumer rights.  The company will respond to the CCPA’s show cause notice. At the moment, the Show Cause Notice has no bearing on the business’s operations, finances, or other activities. Additionally, the management of the company stated in an exchange filing that the notice did not impose any penalties or monetary fines. 

    One of India’s leading EV companies, Ola Electric, is committed to building vertically integrated technology and production capacity for EVs and their parts, such as battery cells. At the Ola Future Factory, it manufactures EVs as well as necessary parts like motors, battery packs, and vehicle chassis.

    Company’s Recent Market Performance

    The Indian electric two-wheeler company recorded its lowest monthly sales of the year in September as its dominance faded due to new competition from smaller firms and issues with the servicing network. In September 2024, Ola Electric sold 23,965 units, marking the second consecutive month that the company’s month-over-month (M-o-M) sales have decreased. According to research, its market share dropped from above 50% in April to 27% in September for five consecutive months due to its declining M-o-M sales.

    Bajaj Auto and TVS Motor both reported increases in their market shares for five consecutive months during this time, closing the sales gap.

    Ola’s declining sales and frequently undercutting prices present additional difficulties for the business’s financial performance. It hasn’t made any money yet.

    Kamra and Aggarwal Locking Horns on X

    Now, the issue has gone to X, where stand-up comedian Kunal Kamra has questioned Ola’s service by using a tweet from Ola CEO Bhavish Aggarwal that included an image of the Ola Gigafactory.

    In the tweet, Kamra asked if Indian customers had a voice. Are they deserving of this? Is this how Indians will adopt EVs? Two-wheelers are the livelihood of many daily wage labourers. If you have a problem with OLA Electric, please share your tale here, tagging everyone. The result was a prolonged verbal sparring match between comedian Kunal Kamra and Ola CEO Bhavish Aggarwal. Kamra didn’t stop here; he went further and tagged Nitin Gadkari, Union Minister for Road Transport & Highways, Government of India, in the tweet. 

    Bhavish Aggarwal: Education | Personal Life | Success Story
    Explore the inspiring journey of Bhavish Aggarwal, the founder and CEO of Ola, as he navigates the dynamic world of technology and transportation. Discover about Bhavish Aggarwal’s education, parents, age, and more.
    StartupTalkyTejas Mundhada