Source : The Heavy Industries Ministry is probing officers that erred in giving approvals to companies that wrongly claimed subsidies under the FAME Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme. Speaking to journalists in New Delhi, Secretary, Ministry of Heavy Industries, Kamran Rizvi said that the investigation also looks in the role of International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India (ARAI).
“Investigation is already underway…Procedural lapses and role of officers that led to the funds wrongly being disbursed will be probed,” Rizvi said while adding that action will also be taken.
Under the FAME scheme, companies were to make electric vehicles (EVs) in India and get subsidised by the centre. But multiple players ended up using imported components in their vehicles and getting financial supports for the same.
This was followed by the government sending recovery notices of Rs 450 crore to seven companies electric two-wheeler (e2w) companies for violating local sourcing norms required to be met under FAME India to claim incentives. These companies were also barred from submitting future claims under the scheme.
Two of the seven accused companies have returned the wrongfully claimed amount till now to the centre. “The government is pursuing the remaining companies to return the money with interest,” a top government official told ET.
Another set of four companies were found to be violating FAME guidelines by mispricing their vehicles to get subsidies. They have deposited the wrongly claimed amount with the centre and are in the process of refunding the excess charged money to customers.
