fameInvestigation has been started against Hero Electric, Benling India and Okinawa Autotech for wrongly taking subsidy under the -2 scheme. The Serious Fraud Investigation Office (SFIO) has searched the premises of Hero Electric Vehicles, Benling India Energy & Technology and Okinawa Autotech International on charges of fraudulently obtaining subsidy worth Rs 297 crore under the government scheme to manufacture electric vehicles (EVs). . “Evidence such as digital data, books and other materials have been recovered during the search operation,” the Corporate Affairs Ministry said in a statement on Monday. The investigation is ongoing.”
Fraud of Rs 297 crore was done
The cases relate to fraudulent availing of subsidies totaling Rs 297 crore by the three companies under the Faster Adoption of Electric Vehicles and Manufacturing (FAME)-2 scheme of the Ministry of Heavy Industries (MHI). FAME-2 scheme was launched in 2019 to promote electric and hybrid vehicles in India. In the Phased Manufacturing Program (PMP) guidelines, manufacturing of certain major vehicle components in India was prescribed to be eligible for subsidy under the scheme. According to the statement, the SFIO searched the premises of Hero Electric Vehicles Pvt Ltd, Benling India Energy and Technology Pvt Ltd and Okinawa Autotech International Pvt Ltd.
taken advantage of unfairly
“The three companies had misleadingly shown compliance with the guidelines applicable to the ministry for claiming subsidy,” the statement said. This was later found to be incorrect and false.” Investigation by SFIO, the investigating agency under the Ministry of Corporate Affairs, revealed that several prohibited parts under the Phased Manufacturing Program guidelines were imported directly or indirectly from China, thereby violating the guidelines under the scheme.
Image Credit: India-Tv.