 "MHI orders probe to investigate role of govt officials in FAME scam")
The ministry of heavy industries (MHI) has started investigating government officials who are responsible for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Phase-II (FAME-II) subsidy irregularity.
“The ministry has started the investigation in the cases of subsidy violation. Procedural lapses and role of officers that led to the funds wrongly being disbursed will be probed,” Kamran Rizvi, Secretary, MHI said while talking to journalists on the sidelines of an event to boost manufacturing in the automobile industry.
The Secretary further indicated that the investigation will extend to examining the involvement of the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) in granting approval to vehicles that were discovered to not comply with the established guidelines.
The action comes several months after the ministry instructed 13 companies to reimburse improperly claimed subsidies.
Of these, seven automakers — Hero Electric, Okinawa Autotech, Ampere Vehicles (Greaves Cotton), Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto — were found to be using imported products in violation of the phased manufacturing guidelines. These seven original equipment manufacturers (OEMs) have been asked to pay back around Rs 469 crore.
The other four — Ola Electric, Ather Energy, TVS, and Hero MotoCorp’s Vida — were found violating the ex-factory price norm and were ordered to pay back a total of Rs 288 crore to customers.
All the defaulters of the ex-factory price have repaid more than 90 per cent of their wrongfully claimed subsidy to the customer. The remaining they have deposited with the government.
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In case of the localisation probe, Ampere Vehicles (Greaves Cotton), Revolt Intellicorp have already repaid their subsidy to the government.
The ministry is also pursuing other companies to return the money by the end of this year, a senior official said.