Electric Fraud: SFIO Cracks Down on Misuse of FAME II Subsidies

The Serious Fraud Investigation Office (SFIO) conducted raids on Hero Electric Vehicles, Benling India Energy and Technology, and Okinawa Autotech International. These companies allegedly misused Rs 297 crore in subsidies under the FAME II scheme. The investigation revealed guideline violations, involving the import of restricted parts.

The Serious Fraud Investigation Office (SFIO) has executed search operations targeting Hero Electric Vehicles, Benling India Energy and Technology, and Okinawa Autotech International over allegations of inappropriate claim of subsidies worth Rs 297 crore designated for electric vehicle production.

Evidence including digital data and documentation was seized, according to a statement by the corporate affairs ministry issued on Monday. These companies collectively misrepresented their compliance with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme requirements to fraudulently acquire the funds.

The investigations revealed that the implicated companies flouted the Phased Manufacturing Programme guidelines by importing restricted components from China, thus violating the subsidy eligibility criteria. The probe is ongoing under the oversight of the corporate affairs ministry.

(With inputs from agencies.)