SFIO has reportedly sealed Hero Electric’s Gurugram premises over alleged violations of the FAME-II subsidy rules
SFIO is investigating Hero Electric as well as Okinawa to ascertain if the companies misused subsidies meant to encourage EV adoption through the FAME-II scheme
Earlier this year in October, Hero Electric reportedly knocked on the doors of the heavy industry ministry to settle the ongoing disputes
The Serious Fraud Investigation Office (SFIO) has reportedly sealed Hero Electric’s Gurugram premises over alleged violations of the FAME-II subsidy rules.
According to a NDTV Profit report, a letter from SFIO’s Director of Investigation, Sumit Kasana, dated November 14, instructed that the seal on the premises remain intact. It warned that breaking the seal would have legal consequences under the Code of Criminal Procedure.
“Please note that if the seal is not intact at the time of opening the constructed building, all the consequences as laid down in the Code of Criminal Procedure would follow,” the notice read.
Meanwhile, a Zee Business report said that the SFIO, which comes under the corporate affairs ministry, is investigating Hero Electric as well as Okinawa to ascertain if the companies misused subsidies meant to encourage EV adoption through the FAME-II scheme.
Inc42 has reached out to Hero Electric and Okinawa for further comments. The story will be updated based on the comments.
Earlier this year in October, Hero Electric reportedly knocked on the doors of the heavy industry ministry to settle the ongoing disputes involving misappropriation of FAME-II subsidies.
At the heart of all this is the second phase of the Centre’s FAME scheme, which subsidises the sale of EVs. A subsequent probe found that as many as five players including Hero Electric in violation of mandatory localisation norms.
Thereafter, authorities launched a clampdown on these original equipment manufacturers (OEMs) and ordered them to refund subsidies availed under the scheme. Hero Electric was ordered to return sops worth INR 133 Cr and an additional interest over alleged violations.
While many EV makers returned the subsidies, Hero Electric contested the government’s claims and sought the release of INR 556 Cr as pending subsidies against sales already made.
Meanwhile, Hero Electric’s sales have been negligible in the recent month. In October, the company sold 143 Escooters, 10% down from the sale of 160 Escooters the previous month.
