Electric vehicle giant, Ola Electric has been asked to reimburse Rs 130 crore to customers, who bought their EV charger.
In a report done based on sources, the two-wheeler company has responded to the probe initiated by the Ministry of Heavy Industries for overpricing.
“The Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company announced in its letter to ARAI dated April 30, 2023, that, on their own volition, they will reimburse the price (approximately Rs 130 crore) of the off-board charger to all customers, who have bought the off-board charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023,” a government official commented.
When asked about the government’s probe and suspension of subsidies, Ola Electric Founder and CEO Bhavish Agarwal had recently told that the company will do whatever the government asks them to do. Moreover, latest developments, the company said that Ola Electric remains in touch with the government to resolve all issues.
The development comes amid reports that the government has initiated an investigation into FAME scheme irregularities after whistleblowers raised apprehensions.
As part of the probe, inputs from the Commerce Ministry and Directorate of Revenue were sought to crosscheck customs records and ascertain whether there was any deviation from the phased manufacturing program.
The report added that according to the complaints, all four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government’s FAME scheme for availing the subsidies.
The companies had earlier claimed that the additional cost was for additional software features and the off-board charger. Both Ather Energy and Ola Electric have also reduced the cost of their electric scooters to meet the scheme’s eligibility criteria.
To be sure, the government approved Phase II of the FAME Scheme with an outlay of Rs 10,000 crore for a period of three years commencing from 1st April 2019.
Out of total budgetary support, about 86 percent of the fund has been allocated for demand incentives to create demand for EVs in the country.
This phase aims to generate demand by way of supporting 7,000 e-buses, 5 lakh electric three-wheelers, 55,000 electric four-wheeler passenger cars (including strong hybrid) and 10 lakh electric two-wheelers.
Albeit the scheme will apply mainly to vehicles used for public transport or those registered for commercial purposes, privately owned registered e-2Ws are also covered under the scheme as a mass segment, the Ministry of Heavy Industries had stated.
