(Reuters) – India is investigating three electric vehicle makers for fraudulently availing government subsidies totaling 2.97 billion rupees (about $35 million), the Ministry of Corporate Affairs (MCA) said on Monday.
The Serious Fraud Investigation Office conducted search operations at Hero Electric Vehicles, Benling India Energy and Technology and Okinawa Autotech Internationall and found that they were violating guidelines tied to a production-linked government subsidy program, the MCA said.
The three firms, which make electric two-wheelers, did not immediately respond to Reuters’ requests for comment.
The subsidy program called FAME II was launched in 2019 by India’s Ministry of Heavy Industries (MHI) to boost local manufacturing of electric vehicles and spur their adoption in the world’s third-largest auto market.
“The three companies, for claiming subsidies, had deceptively shown compliance with the applicable guidelines to the MHI, which was subsequently found to be incorrect and false,” the MCA said in a statement.
Several restricted parts were either directly or indirectly imported from China thereby flouting the guidelines under the scheme, the MCA said, adding that further investigation was under progress.
India’s e-scooter market though small is growing at a rapid clip, accounting for about 5% of total two-wheeler sales in fiscal 2023-2024.
($1 = 84.6750 Indian rupees)
Reporting by Hritam Mukherjee in Bengaluru; Editing by Anil D’Silva
