Undoubtedly, manufacturers that have not paid back the government have challenged its claims, and a few of them have already resorted to legal action to settle the dispute.

The government is anticipating reimbursements from businesses that have allegedly broken the rules of the last iteration of this subsidy scheme totalling Rs 300 crore (plus interest) even as it is ironing out the details of the FAME III scheme.

A government-backed subsidy program under the National Electric Mobility Mission Plan (NEMMP) is called FAME India. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India is known as FAME.

Revolt Motors, Ampere Electric (acquired by Greaves Cotton), and Amo Mobility are among the electric vehicle (EV) manufacturers that the government pulled up for violating the FAME-II policy. According to a senior official from the Ministry of Heavy Industry (MHI), these companies have refunded the subsidies they had previously received from the government. Hero Electric Vehicles, Okinawa Autotech, and Benling India Energy and Technology are just a few of the businesses that have not paid back the government the fines (plus interest).

Moneycontrol was informed by Dr. Hanif Qureshi, Additional Secretary, MHI, that Greaves Mobility has reimbursed roughly Rs 139 crore. Revolt Motors repaid Rs 50 crore, while AMO Mobility paid back Rs 90 lakh (interest included).

The issue gained attention in 2022 after whistleblowers complained to the MHI about multiple registered OEMs selling cars without adhering to localisation requirements under the FAME II initiative and importing parts arbitrarily. Six of the 13 businesses under investigation by the ministry—Hero Electric, Okinawa Autotech, Ampere Vehicles (Rs 124.91 crore), Benling India, and AMO Mobility (Rs 83 lakh)—were punished. A total of Rs 470 crore in fines were imposed on these companies (interest rates excluded). Greaves Cotton has Ampere.

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