Government Tightens Noose Around EV Subsidy, Mulling Action Over Fake FAME Claims: Report

In a significant development, the Indian government is considering taking legal action against several electric vehicle (EV) manufacturers for alleged fraud in claiming subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. This move comes after repeated attempts by the Ministry of Heavy Industries to recover disputed amounts from companies such as Hero Electric, Okinawa Autotech, and Benling India, who have reportedly failed to repay subsidies they claimed incorrectly.

Accusations and Unpaid Dues

According to reports from the Economic Times, these companies are among those accused of fraudulently claiming the highest amounts of subsidies incorrectly and have accumulated substantial unpaid dues under the FAME scheme. Despite efforts by the ministry to resolve the issue, the companies in question have allegedly not cooperated in repaying the disputed amounts.
To address these alleged irregularities and establish criminal intent, the ministry is considering seeking assistance from investigative agencies such as the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). These agencies would be tasked with conducting a thorough investigation into the fraudulent activities related to the FAME scheme.

FAME Scheme and Subsidy Misuse Concerns

The FAME scheme was introduced by the government to promote the adoption and manufacturing of electric vehicles in India by providing subsidies to eligible manufacturers. However, concerns have been raised regarding potential misuse or fraudulent claims by certain companies under this program. If proven, such actions could have significant implications for the EV industry and undermine the government's efforts to promote sustainable transportation.

The potential legal action against these EV manufacturers highlights the government's commitment to ensuring transparency and accountability in the implementation of its policies and initiatives. It also serves as a warning to companies against misappropriating government subsidies and underscores the importance of adhering to regulatory guidelines.