Four major two-wheeler manufacturers are in the hot seat, repaying a whopping INR 312.42 crore to electric scooter buyers amid allegations of mispricing and subsidy misclaims.
Following allegations of mispricing and wrongful subsidy claims, four two-wheeler makers have begun repaying electric scooter buyers. To date, INR 183.15 crore has been refunded to buyers. The total refund amounts to INR 312.42 crore. Ola Electric, Ather Energy, TVS Motor Company, and Hero MotoCorp have deposited INR 129.30 crore with IFCI Ltd, a government-owned financial institution, as part of this process.
An official from the heavy industries ministry provided insights into the refund mechanism. Customers must approach the electric two-wheeler companies for their refunds. On reimbursing their customers, the companies must present proof to IFCI. Only after verification, will IFCI release the parked funds back to the companies.
The backdrop of these repayments lies in a government probe earlier this year. Investigations unveiled that these companies were inappropriately adding chargers and proprietary software costs to their electric scooter prices. Such practices violate the FAME scheme’s guidelines. Under FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles), electric two-wheelers priced above INR 1.50 lakh are ineligible for INR 10,000 crore program benefits.