Govt Considering Legal Options For Recovery Of FAME-II Subsidies From Electric Two-Wheeler Manufacturers

The Central Government is reportedly considering legal options against electric two-wheeler companies over claiming subsidies while not meeting the requirements of the FAME-II scheme. As per a PTI report, the government has served notices to seven electric two-wheeler manufacturers seeking a refund of Rs 469 crore wrongfully claimed under the FAME-II scheme. The companies included the likes of Hero Electric, Okinawa, Ampere EV, Revolt Motors, Benling India, Lohia Auto and Amo Mobility.

Also read: Revolt Motors Returns Rs 50 Crore Claimed As Subsidy Under FAME-II Scheme

An officially told PTI that of the notices sent out, only Revolt stepped forward to return the subsidies claimed with the other manufacturers not having responded. They added that the deadline for responding was close and that the government could make decisions on how to proceed next week including taking legal channels.

Also read: Government Could Seek To Recover FAME II Subsidies From Hero Electric, Okinawa: Report

The improper use of FAME-II subsidies first emerged late last year following which the Ministry of heavy Industries had put a halt on disbursing subsidies to manufacturers. A subsequent investigation conducted by the Ministry revealed that several companies had availed incentives under the scheme while its products did not meet the norms laid down under the scheme. The scheme called for certain components of vehicles to be sourced and manufactured locally with companies reportedly circumventing the rules for some components.

Also read: FAME-II Controversy: Hero Electric Receives Notice For Subsidy Recovery

Earlier in year, EV majors Hero Electric had revealed that it had received a letter from the government referring to models manufactured during the time of the pandemic. The company insisted that its products in that time period met all the requirements of the FAME scheme during the period hence refunding any subsidies did not apply. Okinawa had similarly voiced concerns over the period of audit – 2020 and 2021, citing that all companies during the period were importing certain components as the pandemic had limited options to source some components locally.

With inputs from PTI