SFIO Raids Three EV Makers For Fraudulently Availing Subsidies

Hero, Benling India and Okinawa Autotech had fraudulently availed Rs 297 crore in subsidy under the FAME II scheme of the Ministry of Heavy Industries.

New Delhi: The Serious Fraud Investigation Office (SFIO) conducted search operations at three electric vehicle manufacturing companies on Monday.

Hero, Benling India and Okinawa Autotech had fraudulently availed cumulatively Rs 297 crore in subsidy under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme of the Ministry of Heavy Industries.

The FAME II scheme was launched in 2019 to promote faster adoption of electric and hybrid vehicles in India. The scheme and the phased manufacturing programme (PMP) guidelines stipulated manufacturing of some key components in India, for the vehicle to be eligible for subsidy under the scheme.

To avail of subsidy, the three companies had deceptively shown compliance with the applicable guidelines to the ministry, which was subsequently found to be incorrect and false.

"The three companies, for claiming subsidies, had deceptively shown compliance with the applicable guidelines to the MHI, which was subsequently found to be incorrect and false," it said.

During search operations, evidence like digital data, books and other materials have been recovered while further investigation is under progress, the release states.

Upon investigations by SFIO, it was revealed that several restricted parts under the PMP guidelines were either directly or indirectly imported from China thereby flouting the PMP guidelines under the FAME – II scheme.