5 E2-wheeler cos face lawsuits over FAME-II
₹469 crore in remaining subsidies. The companies willing to return the subsidy amount are electric two-wheeler motorcycle manufacturer Revolt ( ₹24 crore) and Noida-based e-scooter manufacturer Amo Mobility ( ₹83 lakhs). The allegations against the seven original equipment manufacturers (OEMs) are that they flouted the phased manufacturing plan rules laid down in the FAME-II incentive scheme.
The scheme mandated manufacturers to localize a specific set of critical EV components in India within a predefined timeline to be eligible for government demand incentives. A senior executive of a leading electric two-wheeler maker in India said on the condition of anonymity that it had not received FAME-II subsidies from the government for the last 18 months but continued to pass on the benefits of lower cost to customers believing that the money would be reimbursed in the form of subsidy. “We can’t pay back because we do not have the money to pay back to the government, and, at this rate, we will be out of business," he added.
The government has rejected claims for up to ₹1,200 crore in FAME-II incentives already disbursed to OEMs and is seeking to recover nearly ₹500 crore. “Out of 30 OEMs, seven are in the red, and the rest are in green. Two companies said they would refund the money.
The seven companies (found to have flouted the FAME-II eligibility rules) do not represent the entire industry. For the rest, we will go to court and file recovery suits. The government has to get the money back one way or another," a government official said, seeking anonymity.
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