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December 21, 2024
The SFIO has raided Hero Electric, Benling India, and Okinawa Autotech over alleged misuse of FAME II funds.
Date: December 9, 2024
New Delhi - The Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs has searched electric vehicle manufacturers Hero MotoCorp Ltd., Benling India Energy and Technology Private Limited., and Okinawa Autotech Private Limited., as part of an inquiry into alleged misuse of funds under the FAME II scheme.
The cases involve alleged misuse of ₹297 crore in subsidies by the three companies under the Ministry of Heavy Industries' FAME II scheme.
Launched in 2019 with a ₹10,000 crore budget, the FAME II program aimed to promote electric vehicle adoption and boost domestic production by offering subsidies to two-wheeler manufacturers in India.
The rules allowed incentives for using Indian-made parts in electric vehicle manufacturing. Subsidies were granted based on the Phased Manufacturing Program, which set localization criteria to ensure a minimum level of domestic content.
Ministry of Corporate Affairs, said, “The three companies, for claiming subsidies, had deceptively shown compliance with the applicable guidelines to the Ministry of Heavy Industries, which was later found to be incorrect and false.”
The ministry alleges that the SFIO investigation revealed the three companies imported several PMP-restricted items from China, directly or indirectly. The searches uncovered evidence, including digital data, records, and other materials.
