Greaves is among the seven electric two-wheeler (e2w) makers accused by the government for selling vehicles without complying with the localisation mandate.
The company has reached out to repay around ₹124.91 crore, making it the second such company offering to refund the subsidy.
The government had given recovery notices of ₹450 crore to seven companies – Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto and AMO Mobility – for violating local sourcing norms required to be met under FAME India to claim incentives. These companies were also barred from submitting future claims under the scheme.
According to official estimates, Greaves has the highest payables from among these companies. Okinawa and Hero come second and third in this list with dues well over ₹100 crore each.
“We are working with the government to better understand their concern and in relation to the same, we have filed a detailed representation,” Sanjay Behl, Chief Executive Officer of Greaves Electric Mobility, told ET.
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In August, RattanIndia-owned EV maker Revolt Intellicorp paid ₹50.02 crore to the Centre as penalty for violating the guidelines of the FAME subsidy programme that sought to promote local manufacturing and adoption of EVs.
The FAME subsidy plan was pushed to boost EV adoption and has been successful in raising the sale of cleaner fuel two wheelers in the country. A key goal is to incentivize the manufacturing of these vehicles in the country. But allegations into non-compliance of localisation norms have hampered the outcome of the scheme.
Ola Electric, Ather Energy, TVS Motor Company, and Hero MotoCorp, another set companies that have violated FAME guidelines, have been resolving their differences with the ministry of heavy industries. These companies were accused of mispricing of their expensive vehicles to make them eligible for subsidy. These four have collectively deposited ₹129.30 crore with IFCI Ltd, a state-run non-banking finance company, to as they seek to pass on wrongly claimed amounts to consumers.