Hero Electric, Okinawa Caught Up In FAME II Scam Amounting To Rs 297 Crore: Details
The Ministry of Corporate Affairs (MCA), Government of India has revealed that EV makers Okinawa, Hero Electric and Benling flouted guidelines under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme of the Ministry of Heavy Industries (MHI), Government of India to fraudulently avail subsidies amounting to Rs. 297 crores cumulatively as per an investigation by SFIO.
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The Serious Fraud Investigation Office (SFIO) has conducted search operations at three companies engaged in manufacturing of electric vehicles (EVs) namely Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited and Okinawa Autotech Internationall Private Limited. The Ministry of Corporate Affairs (MCA), Government of India revealed that these three EV manufacturers flouted guidelines under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme of the Ministry of Heavy Industries (MHI), Government of India to fraudulently avail subsidies amounting to Rs. 297 crores cumulatively, as per SFIO's investigation.
Launched in 2019 by the Government of India to promote the sale of hybrid and electric vehicles in the country, the FAME II 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. The three companies had deceptively shown compliance with the applicable guidelines to the MHI for claiming subsidies, which was subsequently found to be incorrect.
Upon investigations by SFIO, it was revealed that several restricted parts under the PMP guidelines were either directly or indirectly imported by these manufacturers from China, thereby flouting the PMP guidelines under the FAME II scheme. During the search operations, evidence such as digital data, books and other material were recovered by SFIO. A press release from MCA revealed that further investigation is under progress.
Hero Electric, Okinawa and Benling India could be de-registered or blacklisted from future government schemes if the money owed to the government is not paid back under the FAME II scheme.
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