NCLT admits insolvency plea against EV maker Hero Electric

NCLT

The National Company Law Tribunal (NCLT) in New Delhi has initiated a corporate insolvency resolution process against electric two-wheeler maker Hero Electric following a petition filed by its operational creditor, Metro Tyres over unpaid due of Rs 1.8 crore.

"The Corporate Debtor (Hero Electric) is liable to pay Rs 1,85,25,373/- along with interest to be calculated at 18% per annum to the Operational Creditor (Metro Tyers)...The Petition filed by the Applicant of the Adjudicating Authority Rules for initiating CIRP against the Respondent is hereby admitted," the order dated December 20 said.

The Operational Creditor has proposed the name of Bhoopesh Gupta for the Interim Resolution Professional and the same individual as been appointed by the court.

Hero Electric did not respond to Moneycontrol's queries.

The petition comes two years after the firm was caught in a subsidies investigation controversy wherein the MHI received complaints from whistleblowers that several registered OEMs were selling vehicles without meeting localisation norms under the FAME II scheme and were indiscriminately importing parts.

The ministry investigated 13 companies and fined six of them, including Hero Electric, Okinawa Autotech, Ampere Vehicles (Rs 124.91 crore), Benling India, AMO Mobility (Rs 83 lakh). These companies were collectively fined a total of Rs 470 crore (excluding interest rates). Ampere is owned by Greaves Cotton.