Greaves Cotton pays Rs 124 crore penalty to Heavy Industry Ministry

This is in response to the letter written to Greaves Cotton by MHI on May 25, proposing to deregister Greaves Cotton from FAME II.

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The FAME II subsidy controversies continue, as Greaves Cotton has issued a statement saying that it has paid Rs 124 crore penalty to the Ministry of Heavy Industries (MHI) along with the accrued interest, and without prejudice to our legal rights.

This is in response to the letter written to Greaves Cotton by MHI on May 25, proposing to deregister Greaves Cotton from FAME India Scheme Phase II as it failed to adhere to PMP guidelines. MHI had also directed the company to deposit Rs 124 crore, including incentives claimed under the scheme.

In an official statement, Greaves Cotton has said, “Greaves Electric Mobility Private Limited (GEMPL) is a proud Indian company and a leader in India’s rapidly expanding EV sector. GEMPL was one of the first companies to enthusiastically support and deliver on the Government’s localisation vision. Our legacy of over 160 years represents a storied history of creating Indian jobs, supporting local suppliers, and building an inclusive workforce. In light of our commitment to consumer interests, to avoid protracted litigation, and without admitting to any of the allegations, contentions, or statements made in the Notice, GEMPL, on 27th October 2023, has offered to amicably resolve and bring closure to the matter.”

It further stated, “Accordingly, GEMPL refunded to MHI the entire incentive claim of INR 124 crores appx, along with the accrued interest, and without prejudice to our legal rights. GEMPL awaits confirmation from MHI for taking the necessary steps to withdraw the show cause notice and to be back on the portal soon. We are dedicated to resolving this matter in a fair and equitable manner and for the wider interest of our consumers.”

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This article was first uploaded on October twenty-eight, twenty twenty-three, at fifty minutes past five in the evening.
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