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    ARAI teams visit Hero Electric, Okinawa and other EV players to probe FAME-II norm violations

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    ARAI teams visit Hero Electric, Okinawa and other EV players to probe FAME-II norm violations

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    Investigating authorities believe that some EV makers have been allegedly taking subsidies under the country's Faster Adoption and Manufacturing of Electric vehicles (FAME-II) scheme but have violated the minimum local value addition criteria needed for this.

    According to people in the know, the Automotive Research Association of India (ARAI) teams have started visiting factories of electric vehicle (EV) makers like Hero Electric and Okinawa to probe FAME-II violations. The action comes after the government received several whistleblower complaints against many EV companies for violating these norms.
    The investigating authorities believe that some EV makers have been allegedly taking subsidies under the country's Faster Adoption and Manufacturing of Electric vehicles (FAME-II) scheme but have violated the minimum local value addition criteria needed for this.
    Now, the ARAI teams are probing these allegations and CNBC-TV18 has learnt that inspections are on to check if subsidised products are indeed being made in India.
    "As practiced for many years at Hero Electric, the entire subsidy amount is being passed on to the customer at the time of purchase and there has been no price increase," Hero Electric said on being asked whether the company has increased prices in the absence of FAME subsidies for the last three months.
    "It is unfortunate how some unscrupulous elements are viciously attempting to derail the sudden spurt in EV mobility in India citing delays in the localisation and painting the EV players who are already facing challenges of inadequate supply chain as culprits. It is pertinent to note that the vehicles being sold are fully compliant with the CMVR norms and duly registered with the authorities," the company said.
    Meanwhile, it is also learnt that the Ministry of Heavy Industries is in touch with the Directorate of Revenue Intelligence (DRI) on a probe against Hero Electric which had probed duty evasion by the company and issued an issued notice in December 2020 for the same.
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