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Business News/ Auto News / Govt mulls legal action against Hero Electric, Okinawa, Benling for alleged FAME subsidy fraud. CBI, ED to probe
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Govt mulls legal action against Hero Electric, Okinawa, Benling for alleged FAME subsidy fraud. CBI, ED to probe

Despite repeated attempts by the Ministry of Heavy Industries to recover the disputed amounts, companies like Hero Electric, Okinawa Autotech, and Benling India have allegedly failed to repay the subsidies they claimed incorrectly

The three EV manufacturers Hero Electric, Okinawa, Benling are among the firms that allegedly claimed the highest amounts of incorrect subsidies and have the largest unpaid dues under the FAME scheme.Premium
The three EV manufacturers Hero Electric, Okinawa, Benling are among the firms that allegedly claimed the highest amounts of incorrect subsidies and have the largest unpaid dues under the FAME scheme.

The Indian government is evaluating the possibility of taking legal action against several electric vehicle (EV) manufacturers. The manufacturers are accused of fraudulently claiming subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, according to an Economic Times report.

The report added that despite repeated attempts by the Ministry of Heavy Industries to recover the disputed amounts, companies like Hero Electric, Okinawa Autotech, and Benling India have allegedly failed to repay the subsidies they claimed incorrectly.

Livemint could not independently verify this news.

According to officials cited in the reports, the ministry may seek assistance from investigative agencies such as the Central Bureau of Investigation (CBI) or the Enforcement Directorate to probe the alleged fraudulent activities related to the FAME scheme and establish criminal intent, as per the report. 

The ET report quoted: “The ministry may also enlist the help of investigative agencies such as the Central Bureau of Investigation (CBI) or the Enforcement Directorate for an investigation into the fraudulent activities related to the FAME scheme and establish criminal intent."

According to the report, the three EV manufacturers mentioned are among the firms that allegedly claimed the highest amounts of incorrect subsidies and have the largest unpaid dues under the FAME scheme. However, the specifics of the alleged irregularities have not been independently verified.

The FAME scheme, introduced by the government to boost the adoption and manufacturing of electric vehicles in India, provides subsidies to eligible manufacturers. However, concerns have arisen regarding potential misuse or fraudulent claims by certain companies under this programme.

If legal action is initiated, it could have significant implications for the EV industry and serve as a warning against any potential misappropriation of government subsidies. The government’s potential move underscores its commitment to ensuring transparency and accountability in the implementation of its policies and initiatives aimed at promoting sustainable transportation.

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Published: 19 Mar 2024, 02:32 PM IST
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