FAME II Irregularities: Hero Electric, Okinawa Autotech & Benling India yet to clear fines, not cleared of violations
Hero Electric Vehicles, Okinawa Autotech, and Benling India Energy and Technology, has revealed violations of the FAME-II norms, according to a Hindu Businessline report. It added that contrary to speculation, the companies have not been cleared of wrongdoing. Sources from the Ministry of Heavy Industries (MHI) told the paper that a new committee led by the Additional Secretary has been examining these issues.
The committee has determined that the three companies breached government guidelines under the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme and must pay the stipulated penalties. Livemint could not independently verify the report. The government has set penalties as follows: Hero Electric must pay ₹133.8 crore, Okinawa Autotech ₹116.85 crore, and Benling India ₹48.42 crore.
The investigation began after reports suggested that these companies had been exonerated. An officer at the Joint Secretary level was initially tasked with investigating the role of officials in the scheme's irregularities in April 2023, as per the paper, citing a source. The resulting report, submitted on December 30, 2023, was found to be vague and incomplete in February 2024.
It failed to properly consider the scheme guidelines or examine any officials, the source added. The Competent Authority rejected this report and, on February 20, 2024, assigned the investigation to an independent five-member committee led by an Additional Secretary. This new committee has been diligently reviewing all notifications and guidelines, and concluded that the guidelines were clear and understood by all stakeholders, including testing agencies, original equipment manufacturers (OEMs), and the MHI, as per HBL.
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