Okinawa fails legal bid to escape penalties for abusing govt’s EV scheme

livemint.com:

₹117 crore in penalties to the government. The penalties were imposed after the ministry of heavy industries found that Okinawa allegedly violated domestic manufacturing criteria under the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. The second edition of the scheme that’s designed to promote the adoption of electric vehicles in India concluded in March.

Also read |FAME-3 is coming; and here is what changes for EVs The court’s decision not only intensifies the challenges faced by Okinawa but also sets a precedent that could spell trouble for other companies, notably Hero Electric, as they navigate similar government demands. Mint has seen a copy of the Delhi High Court order from 5 August. The Delhi High Court’s refusal to stay the penalty against Okinawa is noteworthy because the court highlighted that the government had already successfully collected penalties from three out of the six manufacturers found to be non-compliant with FAME-II criteria.

These three manufacturers—Greaves’s Ampere, Amo Mobility and Revolt—had returned government subsidies under Fame II after being penalized. The court recognized that granting relief to Okinawa could undermine the government’s enforcement of the scheme and could have broader implications for companies that have already complied. An email sent to Okinawa Autotech didn’t receive an immediate response.