Hero Electric seeks to settle subsidy misappropriation case with Centre
The electric two-wheeler maker has agreed to cough up penalty for any violation or lack of compliance. "Hero Electric has approached us seeking a resolution of their pending issues...We are examining their request," a senior government official said.
Hero Electric, led by Naveen Munjal, was a beneficiary of MHI's Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme. It, along with five others, was later found to be in violation of mandatory localisation norms and faced a government clampdown after a probe.
The government subsequently sought refund of subsidies from these EV makers, claiming it was wrongfully availed. While three companies returned the subsidy, Hero Electric contested the government's claims. It also sought release of INR 556 crore as pending subsidy against sales already made and took legal recourse.
The Centre, on the other hand, sought to recover INR 133 crore and penal interest from Hero Electric, alleging violation of FAME II norms.
Hero has now sent a fresh communication to the Centre with the aim of settling the dispute.
The official cited above said Hero has suggested six options, including imposition of fine, adjustment of subsidy amounts, third-party reinvestigation, mediation, vehicle retesting, and plant retesting to settle the dispute. It also indicated its willingness to 'any other remedial method as may be suggested by the ministry', the official said.
Hero Electric did not respond to ET's queries. FAME II was followed by the Electric Mobility Promotion Scheme (EMPS) which was subsumed under the PM E-DRIVE scheme.
Hero Electric was also barred from eligibility under any of the subsequent schemes as well.
The company has also sought reversal of blacklisting and allowing it access to the National Automotive Board (NAB) portal for processing pending subsidies.
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