Govt weighs legal action, recovery procedure against FAME defaulters

livemint.com:

₹469 crore, Union government is unlikely to relent and plans to take them to court if the penalties are not paid in next few days. Seven companies—Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto—have been found guilty of wrongfully claiming subsidies under the FAME II scheme, after assembling vehicles in the country with imported products. Under the scheme, companies manufacturing their product completely in India are eligible for government support.

Recently, these companies through the industry body Society for Manufacturing of Electric Vehicles (SMEV) had reached out to the PMO and the ministry seeking a waiver of the penalty, and withdrawal of the notices. Officials said despite the requests, the government would initiate legal action and recovery procedure against these players in case they are default on the repayment of subsidies within the given timeline. The companies have to repay the subsidy amount within one week.

“When it was said manufacture in India, they did not manufacture in India. There is no question of relent, as they have violated the law. We have given notices to them, if they don’t return the subsidy, we will initiate recovery procedures, we will go to the court," said an official.

The ministry had initiated a probe regarding alleged misapropriation of subsidies under the ₹10,000 crore under the FAME scheme. Automakers under the scheme are eligible for subsidies under a condition that the vehicles and their components are completely manufactured in India under the Phased Manufacturing Programme (PMP). PMP is aimed at promoting indigenous manufacturing of electric vehicles, and inputs of sub-assemblies.