SFIO Conducts Search Operations on EV Manufacturers for Subsidy Fraud
The Serious Fraud Investigation Office (SFIO) has conducted search operations targeting three electric vehicle (EV) manufacturing companies—Hero Electric Vehicles Private Limited, Benling India Energy and Technology Private Limited, and Okinawa Autotech International Private Limited.
Allegations of Subsidy Misuse
The investigation stems from allegations of fraudulent claims amounting to ₹297 crores under the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme, initiated by the Ministry of Heavy Industries (MHI) in 2019 to promote electric and hybrid vehicles in India.
Key Findings:
- Non-compliance with Local Manufacturing Norms:
The Phased Manufacturing Programme (PMP) under FAME-II requires certain key components to be manufactured locally.
Investigations revealed that several restricted parts were imported from China, violating PMP guidelines.
- Deceptive Practices:
The companies falsely claimed compliance with the FAME-II guidelines to secure subsidies.
Evidence uncovered includes digital data, books, and other materials, pointing to deliberate falsification.
About FAME-II Scheme
Launched in 2019 to boost EV adoption and reduce dependency on fossil fuels.
Offers subsidies for manufacturers meeting domestic manufacturing norms.
Designed to strengthen India’s EV ecosystem through localized production and reduce reliance on imports.
Implications and Next Steps
The SFIO’s ongoing investigation aims to:
Hold the companies accountable for violating subsidy norms.
Assess the broader impact on the integrity of the FAME-II scheme.
Ensure compliance with domestic manufacturing standards.
This development underscores the importance of strict monitoring and enforcement to maintain the credibility of government initiatives.
