Since the last three days 200 Hero dealers have been protesting against the company outside its Gurugram-based headquarter demanding their dues that account approximately INR 500 crore. The company nullified all the allegations made by the dealers by stating them ‘baseless’ as per the legal notice seen by ETAuto.
“The company is not responding to our demands and allegations; instead they have now served us (members of association) with a legal notice”, said Nishant Bansal, a dealer of two Hero Electric’s outlets in Nangloi Jat and Uttam Nagar, Delhi to ETAuto.
Hero Electric is planning to resolve the open issues by the end of this year, stated company to ETAuto. "Dealers have separate agreements with company based on their sales estimates. Production shutdown for last nine months has caused delays, however, the company has already started production and dispatch of vehicles has already commenced with a commitment to the dealers to resolve open issues by December 2024."
The company’s management has cut all the vital supplies (food, electricity, washroom, and others) for the association due to which they are facing multiple discomforts, Bansal added.
The outstanding dues of the protesting dealers sums up to approximately INR 200 crore. Due to the unresponsive behavior of the company and silence from the government the protesters are now losing their hopes, said Bansal. However, there might be some more dealers joining to protest against Hero Electric.
Hero Electric has for the second time found itself in trouble under the FAME Policy provided by the government of India as earlier it was accused of defying the rules under FAME II Policy.
"It may be noted that the Honorable courts have admitted a petition by Hero Electric disputing the actions of the MHI and sought recovery of pending subsidies to the tune of over INR 550 Crore since 2021. These are subsidies passed on to end customers as per the FAME-2 policy and not been reimbursed to the company till date. Since the matter is sub-judice, the irresponsible statements made by a section of the people at the meeting is being responded to with a legal notice categorically denying the statement and their allegations," the company added.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
