The ongoing dispute between the Ministry of Heavy Industries (MHI) and the manufacturers of electric vehicles (EVs) over the alleged “misappropriation of funds” by 12 or so EV manufacturers may now include a new party.
The Bengaluru-based Ather Energy is accused of fraudulently “managing to bypass the subsidy eligibility limit of Rs 1.5 lakh set by DHI by stealthy separating the ‘EV Charger‘ and the ‘Intrinsic Essential Software’ that are integral parts of the vehicle and vehicle cannot run without them,” according to a letter from the Federation of Small Industries (FSI) to Dr. Hanif Qureshi, Joint Secretary, Ministry of Heavy Industries.
The FAME scheme was introduced by the government to encourage users to adopt electric vehicles by providing subsidy to the tune of Rs 20,000 for a two-wheelers price of Rs 1.5 lakh (max price ex-factory); Rs 50,000 for a three-wheeler (max factory price Rs 5 lakh); four-wheeler Rs 1.5 lakh (max ex-factory price Rs 15 lakh) and e-bus upto Rs 50 lakh (max ex-factory price of Rs 2 crore). The total budget outlay was Rs 8,596 crore.
Allegation
The price of a new e-scooter (ex-factory), which was included as one of the exhibits offered by FSI and quoted by Garner Motors, an Ather dealership, was Rs 173,946, which was Rs 23,946 more than the Rs 1.5 lakh threshold limit established under the FAME II scheme. Additionally, it states that the EV company was charging Rs 19,975 and Rs 21,510 for the charger and a “performance upgrade” separately.
FSI has urged the government to investigate Ather Energy “as it involves a humongous sum of Rs 300 crore plus of taxpayer’s money claimed. Thus, the said amount must be not only be returned to the government immediately but also all the Ather models should also be removed from the FAME II subsidy portal as there is no way they can meet the eligibility criteria as defined under the notification.”
