Delhi High Court Halts Investigation Against Hero Electric FAME-II Subsidy Case

The Delhi High Court has temporarily halted investigative actions against Hero Electric regarding alleged subsidy irregularities under the FAME II scheme. Justice CD Singh has ordered a resolution pathway between the company and the Ministry of Heavy Industries.

The court intervention comes after the Serious Fraud Investigation Office (SFIO) initiated an investigation into potential misappropriation of electric vehicle incentives. Hero Electric faces allegations of claiming approximately ₹133 crore in subsidies through potentially non-compliant practices.

The company will approach ministry officials by December 12 with a resolution proposal. The Ministry of Heavy Industries will subsequently report back to the court on December 20, allowing both parties to address the dispute.

Hero Electric maintains that the investigation is an attempt to criminalize a civil dispute. The company argues that subsidies were legitimately passed on to customers and that the FAME II policy contained numerous ambiguities.

The SFIO's probe suggests that some electric vehicle components were allegedly imported from China, potentially violating scheme guidelines. Hero Electric has challenged these claims, seeking the release of ₹570 crore in pending subsidies.

The case highlights ongoing challenges in implementing India's electric vehicle incentive programs and the complex regulatory environment surrounding emerging clean transportation technologies.

A court hearing is scheduled for December 20 to review the proposed resolution between Hero Electric and the ministry.