The FAME II controversy is escalating as multiple Greaves dealers voice their grievances against the OEM. They claim that a significant portion of Ampere’s management comprises individuals from the Greaves team, and the latter has debited millions of rupees from dealer accounts under the pretext of FAME 2 incentives. Is this just the tip of the iceberg?
Additional dealers have come forward, asserting that Greaves Electric Mobility has subtracted FAME II subsidies from their accounts. The deduction rationale provided was that the Ministry of Heavy Industries was withholding FAME II incentives due to alleged mistakes made by these dealers while filing claims on the FAME Portal.
Questions directed to the Greaves team elicited the response: “This story is factually incorrect, and we categorically deny it. Some dealers have been orchestrating a sustained campaign to tarnish our reputation with malicious intent. We are actively investigating this matter and will not hesitate to take decisive action against the responsible party.” The company did not identify anyone and attributed this reply to a ‘Company Spokesperson.’
Dealers contend that several others in their community face the same issue but are reluctant to speak out openly, hoping the company will eventually reimburse the funds. Suresh Borse, a Greaves dealership owner in Malegaon, Nashik, revealed that despite assurances at the company’s Pune office, his dues, including FAME II incentives, remain unpaid as of November 20, 2023. Furthermore, he highlighted the significant overlap in Greaves and Ampere management.
Ankur Bansal, a former dealer of Greaves Electric Mobility, previously stated, “We were informed that the Ministry of Heavy Industries rejected our FAME II claims due to mistakes in filing sales on the portal. The money was deducted abruptly.”
All dealers mentioned in this report echoed Bansal’s sentiments. Despite repeated requests for clarification from the Greaves team, no response has been received. Several dealers possess call recordings with alleged company officials discussing the matter.
Piyush Karnwal, a Bhopal-based dealer, alleged that Greaves is withholding ₹19,80,000, deducted as early as March 2023, even though Greaves was disqualified from the FAME II scheme before that. Hitesh Choudhary, a Greaves dealership operator in Rajasthan, criticized the company for inadequate support in service and spares. He claimed that his father faced difficulties due to delayed repairs on customers’ Greaves electric scooters.
“There was no OEM support for months. Basic components like microcontrollers were not supplied,” he lamented.
Princy Abraham, a Greaves dealership operator in Kerala, accused the Greaves team of opening another dealership nearby as soon as his business gained traction. While not necessarily illegal, he deemed it ‘morally’ inappropriate for a new brand. He also alleged that the Greaves team withheld as much as ₹550,000 since then.
Referring to clause 4.5, these dealers asserted that Greaves’ actions were in violation. Clause 4.5 of the operational guidelines of FAME 2 states, “Each OEM must ensure that eligible demand incentive is deducted last, after all taxes, and the resulting invoice amount should only be charged from the dealer. It is expected that OEMs will bear the financial cost of the demand incentive and not the dealer or consumer.”
Additionally, the dealers provided the company’s August invoice, which explicitly mentioned FAME II subsidies. Numerous company communications sent to dealers openly acknowledged the company’s participation in the FAME II scheme.
Recently, Greaves Electric Mobility (formerly Ampere Electric Vehicles) claimed to have refunded around ₹1240 million, the subsidy it received under the ₹100 billion Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) scheme. Crucially, Greaves Electric Mobility was excluded from FAME subsidies. Bansal emphasized that the company previously sold electric scooters under the Ampere brand.
Note. This article is based on allegations made by ex-dealers of Greaves Electric Mobility. We are attempting to contact dealerships of other OEMs to determine if they have similar grievances.
