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

Revolt Motors, one of seven companies under the scanner for allegedly violating phased manufacturing programme (PMP) rules under the central government's FAME-II scheme, has returned claimed subsidies (along with interest) totaling Rs 50.02 crore to the government, as per a PTI report.

Revolt Motors currently retails a sole model in the form of the RV400 e-motorcycle.

Hanif Qureshi, Joint Secretary in the Ministry of Heavy Industries, confirmed Revolt's subsidy refund and mentioned the ministry will provide additional time to the remaining six companies accused of violating PMP guidelines.

“We have received a cheque worth Rs 50.2 crore from Revolt Intellicorp, which has been encashed on Thursday”, Qureshi stated.

Also Read: FAME-II Subsidy For Electric Two-Wheelers Slashed; EV Players React

Okinawa Autotech's electric scooters no longer qualify for FAME-II subsidies.

After sending notices and allowing hearings, Qureshi noted that some firms maintain they did not break any rules and will present documents to validate their claims. The list of remaining companies facing scrutiny includes Hero Electric (asked to return subsidies totaling Rs. 133.8 crore), Okinawa Autotech (Rs. 116.85 crore), Ampere Vehicles (Rs. 124.91 crore), Benling India (Rs. 48.42 crore), Amo Mobility (Rs. 83 lakh), Lohia Auto (Rs. 11 lakh).

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

Hero Electric has been asked to return over Rs 130 crore claimed as FAME-II subsidy.

To ensure compliance with PMP localisation guidelines, the ministry assigned testing bodies such as the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) to review 13 companies. These evaluations were prompted by complaints of substantial component imports for electric vehicles, potentially in violation of FAME-II scheme norms.

Also Read: Electric 2-Wheeler Manufacturers To Refund Customers For Home/On-Board Chargers

“The testing agencies submitted 13 reports to us. Of the 13 companies, the testing agencies said that six were found to be complying with the guidelines, but seven have violated them by importing components and falsely claiming that they have manufactured them in India”, Qureshi explained.

With inputs from PTI