The move comes in the backdrop of the Centre considering measures to recover money from three companies who allegedly availed sops wrongfully under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
According to official estimates, the government seeks to recover around INR 155 crore from Hero Electric. "Since the matter is sub judice, we cannot comment on this," a Hero Electric spokesperson said in response to an ET query. Subsidy disbursals in the programme were linked to a phased manufacturing programme (PMP), which ensured higher localisation as years passed.
The government alleges that some companies did not adhere to the PMP but continued availing FAME subsidy, defeating the intent of the scheme.
Hero Electric though maintains that instructions regarding indigenisation and localisation were not elaborated in the FAME policy notifications and PMP guidelines.
But the government says violations by companies under the FAME scheme had been established beyond doubt after recent probes by test agencies and is expected to press its case before the judiciary.
Officials said the companies under the scanner did not share adequate information when sought by test agencies during the recent FAME subsidy probe.
"They have cited the confidentiality clause in agreements to mask sharing information about use of imported parts in EVs," a senior official aware of the probe said.
Hero Electric, Benling and Okinawa Autotech are yet to return the subsidy amount paid to them, ET had reported earlier.
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