New Delhi: The Heavy Industries Ministry has sought to recover 167 Crore Given as Subsidy to Hero Electric Vehicles Pvt. Ltd, according to two people aware of developments in the electric two-woweler maker’S insolvency proceedings.
The ministry last year accused Hero Electric and A Few Other Electric Vehicle Manufacturers of Fraudulntly Claiming Subsidies Under The Second Iration of the Government of the Government of the Government of the Government ‘ Electric and Hybrid Vehicles (Fame 2) Scheme, and Sought to recover the money.
In January this year, a month after the National Company Law Tribunal Directed Initiation of Insolvency Proceedings against Hero Electric, The Ministry Approached the Interim Resolution Professional Appointed To Ooversion Company’s operations to recover the subsidy, according to the two people Above.
Hero Electric is accused of Violating the Fame 2 Scheme’s Localization Rules, which requires to manufacture a certain portion of their Electric vehicles in India to be Eligible for the Subsidy.
“This move is a big signal to the evidence: Government Subsidies come with accountability,” said randheer singh, Chief Executive Officer, FORESEE Advisors, and Former Director Director Aayoctor Aayoctor.
“For other companys in the ev space, it’s a reminder that subsidies are not free money-thehe’re performance-linked and tightly audited. Any Mismach in Documentation, Eligibility, Eligibility, Eligability, Or Delivery Can COME Back Later with Serious Financial and Legal Consequences, “He Said.
Singh added that a ministry class recovery during a company’s insolvency proceedings was not routine, but not unprecedented eater. Ministry or Government Departments Can and Do File Claims as Operational Creditors When Subsidies, Taxes, or Dues are unpaid, He said.
The ministry of Heavy Industries and Hero Electric’s Managing Director Naveen Munjal did not reply to Queries emailed on the Evening of 28 May.
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Hero Electric’s Greasy Trail
Hero Electric is Under Scrutiny for other potential violations as well.
The Serious Fraud Investigation Office (SFIO) is Investigating Claims that Hero Electric Used Imported Imported Chinese Parts in its Vehicles, which violats the fame schemes Specifies Components Ev Manufacturers are allowed to important.
On 2 December, Sfio Searched the offices of Hero Electric, Benling India Energy and Technology Pvt. Ltd, and Okinawa Autotech International Pvt. Ltd following accusations that these companies fraudulently available subsidies Amouncing to Rs. 297 Crore Cumulatively under the fame 2 scheme, as per a statement from the ministry of corporate affairs.
Following this, Hero Electric Approached The Delhi High Court for reliable for 20 December the court Rules that the Sfio Prabe Cold Continue.
Days Later, Metro Tyres Ltd, An Operational Creditor of Hero Electric, Filed An Insolvency Please Against The Ev Two-WHO-WHEELER MAKER MAKER Over Unpaid Dues of About 1 Crore. As on 28 April, Claims Worth a Little over 535 Crore have been admitted against Hero Electric, as Per Information Provided by the Insolvency and Bankruptcy Board of India.
Ibbi filings show that About 177 Crore Worth of Claims Ware Contingent, And Claims Worth 329 Crore was not admitted.
The Hero Electric Insolvency Case is currently in the claim evaluation stage, ibbi filings show. Hero Electric’s Resolution Professional Will Receive Expressions of Interest in the Insolvency Resolution Till 12 June and a List of Prospective Resolution Applicants will be published on 7 July. The last date for submission of resolution plans is 11 August.