Hero Electric Among 3 EV Makers in Scanner for Fraud in Subsidy

Some measures have been taken by the Central Government to promote Electric Vehicles (EV). In this series, the Heavy Industries Ministry had introduced the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II Scheme. Although this scheme has ended, three electric two-wheeler companies are being investigated on suspicion of taking fraudulent incentives. These companies include Hero Electric, Okinawa Autotech and Benling.

a media Report According to , the Serious Fraud Investigation Office (SFIO) has raided the premises of these companies over allegations of subsidy irregularities worth about Rs 270 crore. The investigation is part of a crackdown on EV manufacturers who allegedly misused the scheme by violating rules. FAME II scheme was launched in 2019 to promote electric vehicles. In this, incentives worth about Rs 10,000 crore were offered to manufacturers to use components made in the country for EVs. In this investigation it was found that some EV companies did not follow this rule. These companies had used parts imported from China.

“These three companies had falsely submitted guidelines to the Heavy Industries Ministry to claim subsidy. This was later found to be incorrect and false,” the SFIO said. These three companies had used banned parts under FAME II for manufacturing EVs. The Heavy Industries Ministry had also investigated the claim of subsidy without following the Phased Manufacturing Plan (PMP) rules. The ministry had received some anonymous emails alleging that many EV manufacturers were taking subsidies by violating the rules.

The SFIO, which comes under the Ministry of Corporate Affairs, has seized data, ledgers and some other material as evidence during the raid. Further investigation is being done in this matter. The government may blacklist such EV makers who violated the rules in FAME II for the upcoming FAME III scheme.