As part of the continuing investigation into an alleged FAME II scheme fund embezzlement case, the Ministry of Corporate Affairs’ Serious Fraud Investigation Office (SFIO) has searched the electric car manufacturers Hero Electric, Benling India, and Okinawa Autotech.
The cases stem from the three companies’ alleged fraudulent use of subsidies totaling Rs 297 crores under the Ministry of Heavy Industries’ Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme.
With an investment of Rs 10,000 crore, the government unveiled the FAME II program in 2019. In an effort to encourage the use of electric vehicles and domestic production, the program offered subsidies to two-wheeler manufacturers to produce electric vehicles in India.
The guidelines allowed incentives for the use of Indian-made components in the production of electric automobiles. In accordance with the Phased Manufacturing Program (PMP) criteria, which were designed to guarantee a specific percentage of localization, the subsidy was granted.
According to a statement from the Ministry of Corporate Affairs, “the three companies, for claiming subsidies, had deceptively shown compliance with the applicable guidelines to the Ministry of Heavy Industries, which was later found to be incorrect and false.”
According to the ministry, the SFIO investigation revealed that the three businesses either directly or indirectly imported a number of PMP-restricted items from China. Related pieces of evidence, including books, digital data, and other materials, were retrieved from the companies during the search operations.