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The Delhi High Court on Wednesday directed the Ministry of Corporate Affairs' Serious Fraud Investigation Office (SFIO) to defer its investigations and refrain from taking any coercive action against Hero Electric. The court asked for the pause until the Ministry of Heavy Industries submits its report on resolving its dispute with the company over alleged misappropriation of subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme. The FAME II scheme, launched in 2019 with an outlay of Rs 10,000 crore, provides subsidies to two-wheeler companies to make electric vehicles in India in a bid to boost EV adoption and local manufacturing.
According to media reports, Hero Electric informed Justice CD Singh that it was willing to resolve the dispute with the ministry, which had demanded the disgorgement of Rs 133 crore paid to the company in sops, along with interest, citing alleged violations of FAME II norms.
Acknowledging this, the judge instructed Hero Electric to approach the relevant official from the ministry with a proposal by December 12 to explore a possible resolution. The court also directed the ministry to consider the proposal and submit a report on the resolution during the next hearing, scheduled for December 20.
The company and its director, Naveen Munjal, had approached the Delhi High Court on Wednesday challenging the Ministry of Corporate Affairs’ order directing an SFIO investigation against it.
The SFIO has identified three electric vehicle manufacturers, including Hero Electric, allegedly involved in fraudulently availing subsidies worth Rs 297 crore under the FAME II scheme.
The company, represented by senior counsel Vikas Pahwa and advocate Anuradha Dutt, denied the allegations and sought the release of Rs 570 crore in pending subsidies for sales already made.
 "Hero Electric")
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