Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited, and Okinawa Autotech International Private Limited are the three electric vehicle manufacturing companies where the Serious Fraud Investigation Office (SFIO) has carried out search operations.
The corporate fraud watchdog in India has discovered, during search operations, a Rs 297 crore scam involving three electric two-wheeler manufacturers. According to the Ministry of Corporate Affairs’ statement, “SFIO’s investigations have shown that a number of PMP-restricted parts were either directly or indirectly imported from China, in violation of the PMP guidelines under FAME-II.”
Evidence such as books, digital data, and other materials have been found during the search activities. Additional research is being conducted.
In 2019, the FAME II program was introduced to encourage the use of hybrid and electric cars in India. The Phased Manufacturing Programme (PMP) guidelines and the FAME-II scheme required that certain essential components be manufactured in India in order for the vehicle to qualify for the scheme’s subsidies.
Hero Electric and other companies for obtaining subsidies fraudulently
Hero Electric had previously petitioned the Ministry of Heavy Industries (MHI) in October to resolve outstanding issues and release unpaid electric vehicle (EV) subsidies, authorities told ET.
The manufacturer of electric two-wheelers has committed to paying fines for any infractions or noncompliance. “Hero Electric has contacted us in an attempt to resolve their outstanding problems…A top government official stated, “We are looking into their request.” Hero Electric, under the leadership of Naveen Munjal, benefited from MHI’s Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) program. Following an investigation, it and five others were eventually found to have violated required localization requirements, and the government clamped down.
On the other hand, the Center claimed that Hero Electric had violated FAME II regulations and sought to recoup Rs 133 crore along with hefty interest. Hero Electric was likewise disqualified from all of the later programs. In order to manage pending subsidies, the company has also requested that the blacklisting be reversed and that it be granted access to the National Automotive Board (NAB) portal.
