Government intends to Penalise Negligent E-scooter Companies.

A half-dozen electric scooter manufacturers who were found guilty of fraudulently claiming subsidies under the flagship FAME II (Faster Adoption and Manufacturing of Electric Vehicles) programme are the subject of sanctions that the Centre is considering.

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The Centre is considering penalizing certain companies, potentially denying them further government funding, as part of a recent development. Additionally, they might not be allowed to take advantage of discounts on cars sold in the previous 15 months. As part of government initiatives to address specific issues relating to these corporations, certain steps are being examined. These factors have been validated by a senior government official.

The main FAME II (Faster Adoption and Manufacturing of Electric Vehicles) programme has found guilty 12 electric scooter manufacturers of fraudulently claiming subsidies.

Quick catch-up: The government has issued recovery notices to seven companies, including Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto, and AMO Mobility. Companies have been issued recovery notices worth ₹500 crore for violating local sourcing norms under the FAME II scheme, demonstrating the government's commitment to enforcing compliance.

The government has temporarily halted subsidies for two-wheeler manufacturers under the FAME-II scheme, following whistleblower allegations. Allegations suggest manufacturers misclaimed incentives without meeting local sourcing norms, leading to suspension of subsidies. Government's commitment to ensure scheme implementation and address misuse by two-wheeler companies.

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