 "FAME-II violations: SFIO conducts search operations at 3 companies")
The Serious Fraud Investigation Office (SFIO) has conducted search operations at Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited, and Okinawa Autotech International Private Limited for “fraudulently availing” of subsidies worth Rs 297 crore under the government’s FAME II scheme, said a statement on Monday.
According to SFIO, the three companies engaged in the manufacturing of electric vehicles had deceptively shown compliance with the applicable guidelines to the Ministry of Heavy Industries (MHI) for claiming subsidies, which was found to be incorrect and false.
“These cases arise from the fraudulent availing of subsidies amounting to Rs 297 crore cumulatively by all the three companies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme of the Ministry of Heavy Industries (MHI), Government of India,” the Ministry of Corporate Affairs (MCA) said in the statement.
The FAME II scheme was launched in 2019 to promote electric and hybrid vehicles in India. The scheme and the Phased Manufacturing Programme (PMP) guidelines stipulated manufacturing of some key components in India, for the vehicle to be eligible for subsidy under the FAME II.
“Upon investigations by SFIO, it is revealed that several restricted parts under the PMP guidelines were either directly or indirectly imported from China, thereby flouting the PMP guidelines under FAME–II,” the MCA said.
During search operations, evidence like digital data, books, and other materials have been recovered. Further investigation is under progress, it said.
Under the FAME II scheme, a total of 13 companies have been found to have wrongfully claimed subsidies. Seven automakers — Hero Electric, Okinawa Autotech, Ampere Vehicles (Greaves Cotton), Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto — were identified for using imported products, violating the phased manufacturing programme (PMP) guidelines. These companies have been asked to repay around Rs 469 crore.
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Additionally, four companies — Ola Electric, Ather Energy, TVS, and Hero MotoCorp's Vida — were found to have breached the ex-factory price norm. They have been ordered to refund a total of Rs 288 crore to customers.
The ex-factory price violators have already repaid over 90 per cent of the wrongfully claimed subsidy to customers, with the remaining amount deposited with the government. Meanwhile, PMP violators Hero Electric and Okinawa Autotech are contesting the matter in court. Others have reimbursed the wrongfully claimed subsidy to the government.