In a sweeping crackdown, the Serious Fraud Investigation Office conducted search operations at three electric vehicle manufacturers, uncovering alleged irregularities in their compliance with government subsidy guidelines.
The companies under scrutiny — Hero Electric Vehicles Pvt. Ltd., Benling India Energy and Technology Pvt. Ltd. and Okinawa Autotech International Pvt. Ltd. — are accused of fraudulently availing subsidies totaling ₹297 crores under the Faster Adoption and Manufacturing of Electric Vehicles, or FAME-II, scheme.
Launched in 2019 by the Ministry of Heavy Industries, the FAME-II scheme was designed to incentivize the adoption of electric and hybrid vehicles, requiring manufacturers to adhere to the Phased Manufacturing Programme (PMP) guidelines.
These guidelines mandate that specific critical components of eligible vehicles be manufactured domestically. However, investigators have alleged that the companies misrepresented their compliance with these requirements, presenting fabricated documentation to claim subsidies.
The SFIO’s probe revealed that several restricted components, which were supposed to be locally manufactured under the PMP guidelines, were imported directly or indirectly from China.
This non-compliance undermines the scheme’s goal of fostering domestic manufacturing and self-reliance in the EV sector.
During the raids, investigators recovered digital data, financial records, and other materials expected to bolster the case against the accused firms.
The findings suggest a coordinated effort to flout regulations, raising concerns about the monitoring mechanisms of government subsidy programs.
This investigation marks a significant development in ensuring accountability within India’s burgeoning electric vehicle industry.
As the country pursues ambitious goals for sustainable transportation, the case serves as a reminder of the challenges in balancing rapid industrial growth with regulatory integrity.
The SFIO is expected to continue its investigation to determine the full extent of the alleged fraud and its implications for public funds.
