SFIO Cracks Down on Electric Vehicle Companies Over Subsidy Fraud

The Serious Fraud Investigation Office (SFIO) has conducted searches at three electric vehicle manufacturers accused of fraudulently obtaining Rs 297 crores under the FAME II scheme by importing restricted items from China. Ongoing investigations aim to unravel deeper compliance issues within the companies.

The Serious Fraud Investigation Office (SFIO) embarked on a series of searches across three companies involved in electric vehicle manufacturing on Monday, the Ministry of Corporate Affairs, revealed. As per the statement, these companies are accused of illicitly obtaining subsidies worth Rs 297 crores under the FAME II initiative.

The firms reportedly deceived the Ministry of Heavy Industries by falsely demonstrating adherence to subsidy criteria. Investigators found that non-compliance stemmed from the importation of prohibited components from China, contravening the Local Manufacturing guidelines inherent in the FAME II program, the ministry explained.

At the search locations, authorities confiscated digital evidence, documents, and materials essential for the ongoing probe. Initiated in 2019, the FAME II scheme promotes electric mobility by mandating the local production of essential vehicle components to qualify for financial incentives. The SFIO continues to pursue evidence in this complex corporate fraud case.

(With inputs from agencies.)