Investigations reveal that companies flouted PMP guidelines under FAME – II
FinTech BizNews Service
Mumbai, 2 December, 2024: The Serious Fraud Investigation Office (SFIO) has conducted search operations at three companies engaged in manufacturing of electric vehicles namely Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited and Okinawa Autotech Internationall Private Limited.
These cases arise from the fraudulent availing of subsidies amounting to Rs. 297 crores cumulatively by all the three companies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme of the Ministry of Heavy Industries (MHI), Government of India.
The FAME II scheme was launched in the year 2019 to promote electric and hybrid vehicles in India. 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, for claiming subsidies had deceptively shown compliance with the applicable guidelines to the MHI, which was subsequently found to be incorrect and false.
Upon investigations by SFIO, it is revealed that several restricted parts under the PMP guidelines were either directly or indirectly imported from China thereby flouting the PMP guidelines under FAME – II.
During the search operations, evidences like digital data, books and other material have been recovered.
Further investigation is under progress.
