The Serious Fraud Investigation Office (SFIO) recently carried out search operations at three companies in New Delhi that specialize in manufacturing electric vehicles. The Ministry of Corporate Affairs (MCA) disclosed that these actions were prompted by suspicions of fraudulent activities related to the companies' involvement in the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme, where they allegedly obtained subsidies amounting to a combined total of Rs 297 crores.
The companies under scrutiny reportedly misrepresented their compliance with the necessary guidelines specified by the Ministry of Heavy Industries (MHI) to qualify for the subsidies under the FAME II scheme. It was later uncovered that certain essential components crucial for the electric vehicles were either directly or indirectly imported from China in violation of the Phased Manufacturing Programme (PMP) guidelines, as unveiled during the SFIO's investigations.
During the search operations, a variety of potential evidence such as digital data, literature, and other materials were seized by the SFIO, as confirmed by the MCA. The investigation is ongoing to delve deeper into the alleged fraudulent practices and uncover the extent of the misconduct. The FAME II scheme was initially initiated in 2019 with the objective of encouraging the adoption of electric and hybrid vehicles in the Indian automotive market by offering subsidies. The scheme, along with the PMP guidelines, mandated that specific vehicle components had to be manufactured within India to qualify for the subsidies.