The Centre is contemplating legal action against Hero Electric, Okinawa Autotech, and Benling India for allegedly failing to repay subsidies they wrongly received under the FAME scheme aimed at promoting electric mobility in India. Despite efforts by the Ministry of Heavy Industries to recover the disputed amounts from these companies, legal action is being considered to address the issue.
The ministry may involve agencies like the CBI or Enforcement Directorate for a thorough investigation into the misuse of subsidies under the FAME scheme, aiming to establish any criminal intent behind the subsidy default.
The government aims to recover approximately INR 155 Cr from Hero Electric, INR 125 Cr from Okinawa, and INR 50 Cr from Benling, according to estimates by the ministry. These three companies are among the top defaulters accused of wrongfully claiming subsidy amounts under the FAME scheme.
While other companies like Ampere EV, Revolt Motors, Lohia Auto, and AMO Mobility have resolved the issue by refunding the subsidy along with penal interest, Hero Electric, Okinawa Autotech, and Benling India are yet to comply fully.
Amit Kumar, CEO of Benling India, stated that the company has adhered diligently to the FAME II scheme's guidelines and requirements. He explained that while Benling India sold 29,803 electric two-wheelers under the scheme, it received subsidy payments for only 19,986 vehicles, leaving an uncleared subsidy amount of INR 42.48 Cr pending.
Hero Electric has been engaged in discussions regarding this issue for over 18 months and has offered several proposals to resolve the matter, according to the company. It claims to have provided evidence to the Ministry of Heavy Industries demonstrating its compliance with FAME guidelines.
Okinawa Autotech stated that the matter is currently sub judice, indicating that the company is awaiting further instructions from the honorable high court regarding the subsidy repayment issue.
The government's move to initiate legal action against defaulting companies under the FAME scheme underscores its commitment to ensuring compliance with regulations and promoting the growth of electric mobility in the country.
