Nearly 50% of electric two-wheelers sold under India's FAME-II scheme had false localization claims.
Government reduced FAME-II beneficiary two-wheelers count from 989,000 to 564,000 after investigation.
Automotive Research Association of India found firms relying on imports for key parts, providing incorrect information.
Subsidies required companies to follow a phased manufacturing plan with gradual increase in local sourcing.
Greaves Electric Mobility was found not to follow guidelines and its stock fell 10.3%.
Government withheld subsidies worth Rs 1,400 crore but removed these units from the official tally after investigation.