SFIO Probes 3 EV Cos for FAME II Scheme Fraud

New Delhi, Dec 2 (PTI) The Serious Fraud Investigation Office (SFIO) has conducted search operations at the premises of Hero Electric Vehicles, Benling India Energy and Technology, and Okinawa Autotech Internationall for fraudulently availing subsidies worth Rs 297 crore under the government scheme for making electric vehicles.

"During the search operations, evidences like digital data, books and other material have been recovered. Further investigation is under progress," the release issued by the corporate affairs ministry said on Monday.

These cases arise from the fraudulent availing of subsidies amounting to Rs 297 crore 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).

The FAME II scheme was launched in 2019 to promote 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.

According to the release, the SFIO has conducted search operations at Hero Electric Vehicles Pvt Ltd, Benling India Energy and Technology Pvt Ltd and Okinawa Autotech Internationall Pvt Ltd.

"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.

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

The probe agency comes under the corporate affairs ministry.