 "Okinawa")
The government in the Delhi High Court said that the electric two-wheeler (e2W) manufacturer Okinawa Autotech International Private Limited (Okinawa) should not be granted interim relief in the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) violation case as they themselves have ‘acknowledged’ that they have ‘violated the scheme.’
Okinawa, the first original equipment manufacturer (OEM) to move court, filed a petition in the Delhi High Court seeking a restraining order against the government’s directive to recover Rs 116 crore, which it had claimed as incentives under the FAME scheme.
During the court hearing, N Venkatraman, Additional Solicitor General (ASG) representing the Union of India, stated that “the petitioners themselves have acknowledged that the petitioner herein (Okinawa) has violated the FAME Scheme and since they have acknowledged, they are not entitled to any interim relief from the Court.”
The ASG also pointed to a document which has been supplied by the petitioner giving out a list of 23 parts, including traction battery pack, DC-DC converter charge, traction motor, wheel rim, among others.
It is stated by the ASG that the list has been supplied by the petitioners stating that the following parts are imported and, therefore, the stand of the petitioners that only onboard charger, hub motor, and motor controller were imported till 2021 is not correct.
The ASG also drew attention to a letter dated September 23, 2022, sent by the International Centre for Automotive Technology addressed to the Joint Secretary, Ministry of Heavy Industries (MHI) on the strip-down analysis report of e2W procured in as is where is condition from the market manufactured by Okinawa and Hero Electric to contend that the report shows that DC-DC converter, traction motor, onboard charger, wheel rim, and buzzer were all imported for the financial years 2021-22, 2022-23.
However, a senior legal counsel for Okinawa said that “the company has filed a writ petition against the government, contesting the erroneous demand by the authorities and their interpretation of the FAME II schemes and letter/notifications issued thereunder. The petition also addresses delays exceeding 15 months in receiving FAME II incentive payouts.”
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“The Hon’ble Court has conveyed to the ASG that the government should refrain from pursuing any action against Okinawa, a stance to which the ASG has concurred. The Honourable Court has also directed the government to submit an affidavit for their alleged remarks against the company within 10 days and the same was required to be submitted by December 3. Regrettably, we are yet to receive any such affidavit. The upcoming hearing for this petition is scheduled for December 18,” the senior legal counsel for Okinawa told Business Standard in a written reply.
The ASG also stated that under the Scheme benefit was given to 13 OEMs who manufacture two-wheelers and out of 13 OEMs, six were not found fit and, therefore, a decision was taken by the Government to withdraw the subsidy given to them under the Scheme and out of six OEMs who were not found fit, three OEMs have voluntarily returned back the subsidy amount.
“Adjudication proceedings in respect of the petitioner herein have concluded and in respect of Hero Motors, the adjudication proceedings are on. Any interim measure given to the petitioner at this juncture will have its repercussions on the three OEMs who have returned the subsidy amount,” the ASG said.
After concluding its investigation, the MHI had asked all the violator OEMs to pay back around Rs 469 crore.
