Ev Spectrum’s Post

🚨 SFIO Investigates FAME II Violations by Leading EV Manufacturers. The Serious Fraud Investigation Office (SFIO) has conducted search operations at Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited, and Okinawa Autotech International Private Limited for allegedly fraudulently availing subsidies worth ₹297 crore under the government’s FAME II scheme. Launched in 2019, the FAME II scheme was designed to promote electric and hybrid vehicles in India, with subsidies contingent on compliance with Phased Manufacturing Programme (PMP) guidelines that mandate key components to be manufactured in India. Key Findings: + Investigations revealed these companies imported restricted parts from China, violating PMP guidelines. + Evidence, including digital data and documents, was seized during the searches. Broader Impact: +A total of 13 companies have been found wrongfully claiming subsidies under FAME II, amounting to ₹469 crore. +Seven automakers, including Hero Electric, Okinawa Autotech, Ampere Vehicles, Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto, violated PMP guidelines and have been asked to repay the subsidies. +Hero Electric and Okinawa Autotech are currently contesting the matter in court. Ex-Factory Price Violations: +Companies like Ola Electric, Ather Energy, TVS, and Hero MotoCorp's Vida breached the ex-factory price norm, resulting in a refund mandate of ₹288 crore to customers. Over 90% of this amount has already been refunded, with the remaining deposited with the government. +This case underscores the importance of transparency and compliance in accessing government subsidies. With the investigation still underway, further action may follow. What are your thoughts on the impact of such developments on India's EV sector?