The court’s decision solidies the government’s move and it will help them to nab the fine from Okinawa and Hero Electric.
After several weeks of escalating tensions among the Indian electric two-wheeler manufacturers, the Delhi High Court has rejected the petitions of Okinawa from paying Rs 117 crores penalty to the government. The Ministry of Heavy Industries imposed a fine on the company after it was found guilty of deliberately violating the manufacturing norms under the FAME-II scheme.
The court’s decision could further escalate anxiety among other companies, such as Hero Electric, who are also fined for breaching the government norms. According to the court, the refusal to stay the order is justified on grounds that the government has already collected fines from three companies out of the six alleged.
Six two-wheeler manufacturing companies were found to be non-compliant with the FAME-II scheme, which was unleashed to grow the EV ecosystem in the country. Revolt, AMO Mobility, and Ampere are the other three companies that have returned the entire subsidies to the government. The Delhi High Court added that the stay order to Okinawa could chip away at the government’s relentless effort to grow the industry.
Mint has sent an email to Okinawa for an official statement, but the response is yet to arrive. The Ministry of Heavy Industries have told the media that the court’s decision solidies the government’s move and it will also help them to nab the fine from Okinawa and Hero Electric. In an effort to make the upcoming FAME-III scheme more fruitful, the proceedings against the alleged companies are essential, feels the Ministry.
Hero Electric and Okinawa, considered to be the top domestic electric two-wheeler manufacturers, are going through a rough time since they are de-registered from the FAME-II scheme. Once the significant beneficiaries of the scheme will now have to pay a total fine of Rs 300 crore to the department. Back in July, Okinawa filed a petition in the High Court to prevent the government from taking strict actions against them. The company argues in court that the imposition of fine has severely affected the fiscal growth of the company to such an extent that it cannot manufacture any vehicle further.
