the Serious Fraud Investigation Office (SFIO) has launched investigations into three prominent electric vehicle (EV) manufacturers—Hero Electric, Benling India, and Okinawa Autotech. These companies stand accused of misleading the government to claim substantial subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme. The total amount of alleged fraudulent claims reaches a staggering Rs 297 crore.
The FAME II initiative, designed to incentivize the adoption of electric vehicles in India, comes with strict guidelines. One of the key requirements is that certain critical components of the vehicles must be locally manufactured, as part of the government’s broader push to reduce reliance on imports and boost domestic production. However, the SFIO has discovered that these companies may have falsely claimed to meet these standards, while actually sourcing key parts from China, violating the very framework they pledged to follow.
This investigation isn’t just about numbers; it strikes at the heart of India’s growing EV industry, which has been hailed as a critical solution to the country’s pollution and energy dependence problems. If the allegations are proven true, it could undermine public trust in the sector and set back efforts to transition to greener vehicles. For the workers at these companies and for the future of India’s electric mobility landscape, this case serves as a reminder of the delicate balance between government support and corporate responsibility. The outcome could have far-reaching implications for both the industry and the consumers who depend on it. The SFIO’s next steps will likely involve detailed forensic analysis and further scrutiny of company practices—potentially reshaping the regulatory landscape for electric vehicles in India.
