SFIO conducts searches at three EV makers over ₹297 crore subsidy fraud

The Serious Fraud Investigation Office (SFIO) has carried out search operations at three electric vehicle manufacturers—Hero Electric Vehicles Pvt Ltd, Benling India Energy and Technology Pvt Ltd, and Okinawa Autotech International Pvt Ltd—over allegations of fraudulent claims under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme.

The companies are accused of improperly availing subsidies totaling ₹297 crore under the FAME II scheme, which was launched in 2019 to promote electric and hybrid vehicles in India. The scheme’s guidelines, including the Phased Manufacturing Programme (PMP), require that certain components be manufactured in India to qualify for subsidies. However, investigations revealed that the companies falsely claimed compliance with these guidelines.

SFIO’s probe uncovered that several restricted parts were either directly or indirectly imported from China, violating the PMP rules under FAME II. During the searches, digital data, books, and other materials were seized.

Further investigations are ongoing.

The Central government has been investigating Hero Electric and Okinawa for allegedly misappropriating subsidies FAME scheme since the last year. Government testing agencies Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) have conducted the probe after whistleblower complaints against the EV companies.

The government has been investigating misappropriation of subsidies by at least 14 electric vehicle players including Hero Electric, Okinawa, Benling, Okaya, Jitendra New EV, Greaves Electric Mobility, Revolt Intellicorp, Kinetic Green Energy, Avon Cycles, Lohia Auto, Thukral Electric & Victory Electric.