EV Subsidy Not Received After Purchase? State and Central Escalation

Who this guide is for

This guide is for anyone in India who bought an electric two-wheeler, three-wheeler or car expecting a purchase subsidy or incentive, and finds that the benefit has not been received. It is useful if:

• The dealer told you the subsidy would be credited to your bank account later, and it never arrived.
• Your subsidy application was rejected and you do not understand why.
• You paid the full on-road price expecting a refund of the incentive amount.
• The dealer collected the subsidy amount from you but says the claim is still pending or the budget is finished.
• You want to know whether RTI, a transport-department grievance, or a consumer complaint is the right tool for your situation.

Electric-vehicle incentives in India come from two broad sources: central schemes (over the years these have included FAME and later phases such as the PM E-DRIVE scheme) and state EV policies, each of which has its own portal, eligibility list, incentive amount and timeline. These rules change frequently and differ from one state to another. This guide deliberately keeps scheme amounts and exact rules general — you must confirm the current position for your state and your vehicle on the official portal, because what applied last year may not apply now.

This guide does not cover a rooftop solar subsidy, which runs through a different portal and DISCOM process. For that, see our companion guide on rooftop solar subsidy not credited.

What you can do this weekend

Friday evening

Pull out your vehicle file. Find the tax invoice, the delivery note, the registration certificate, and anything the dealer gave you about the subsidy at the time of sale. Note the chassis number or VIN and the vehicle registration number — these are the keys used to track a subsidy claim.

Now answer one question clearly: was the subsidy supposed to be adjusted upfront at the dealership (so you paid a lower price), or credited later to your bank by direct benefit transfer? If you are not sure, send the dealer a short message tonight asking them to confirm in writing which model applies, the scheme name, and the application or claim number they generated for you.

Check the bank account and Aadhaar details that were submitted for the claim. A wrong or inactive account, or an Aadhaar that is not linked to that account, is one of the most common reasons a direct benefit transfer fails silently.

Saturday

Go to the official scheme or state EV policy portal and search your claim using the vehicle or application number. Save a dated screenshot of whatever status it shows — pending, approved, rejected, or payment-failed. If there is a rejection note or a pending-action message, download it. This screenshot is the single most useful piece of evidence you can hold.

If you cannot find the portal or your claim, this itself tells you something: the dealer may never have filed it. Email the dealer principal (not just the salesperson) and the manufacturer customer care, asking three specific things — was the subsidy claim filed, what is the application number, and what is the current status. Ask for a reply in writing. Keep this email; verbal assurances will not help you later.

If the dealer says the claim was filed and approved but the money has not come, the problem is likely on the payment side — usually a bank or Aadhaar mismatch. If the dealer says it is still pending because the budget is exhausted, ask for that in writing from the nodal agency, not just from the dealer.

Sunday

Draft your written representation to the state transport department or the nodal implementing agency for the EV scheme (use the template in this guide). Quote your application number, vehicle number and chassis or VIN, and attach your invoice and the portal screenshot.

Decide which route fits your situation. If a public authority holds your claim and is sitting on it, your tools are a portal grievance, a CPGRAMS complaint and an RTI for the file status. If the dealer collected money from you and did not pass on or claim the subsidy, your tool is the consumer route — the National Consumer Helpline on 1915 and, if needed, the consumer commission.

Get everything ready to send first thing Monday. Print or scan your documents and number them so they can be referred to in your letter.

Documents and evidence checklist

Step-by-step action plan

Step 1 — Confirm which subsidy you were promised and how it is paid

Before chasing anyone, be clear about what you are owed. Find the exact scheme your vehicle qualifies under — a central scheme or your state EV policy — and whether the benefit is adjusted at the dealer or paid later by direct benefit transfer. Ask the dealer to put this in writing, including the scheme name and the amount. This matters because if the subsidy was already adjusted in your invoice price, there may be nothing further owed to your bank; the dispute then changes shape entirely.

Step 2 — Gather your purchase and vehicle documents

Collect the tax invoice, the chassis or VIN number, the registration certificate, the bank and Aadhaar details used for the claim, and any subsidy claim acknowledgement or application number. Keep one folder, physical and scanned. A claim is tracked by vehicle and application number, so if you do not have the application number, that is your first thing to request from the dealer.

Step 3 — Check the subsidy status on the official portal

Search your claim on the official scheme or state EV portal using your vehicle or application number. Read the status carefully. The four common states are pending (claim filed, awaiting processing or funds), approved but unpaid (usually a bank or Aadhaar issue), rejected (a defect you may be able to fix), and no record found (the dealer likely never filed). Save a dated screenshot for each finding.

Step 4 — Put the dealer and manufacturer on written notice

Email the dealer principal and the manufacturer customer care. State your vehicle number, chassis or VIN, and date of purchase, and ask them to confirm whether the subsidy claim was filed, the application number, and the current status. Give them a reasonable deadline, say seven working days, to respond in writing. Keep a copy of the email and any reply — this trail is your evidence both for escalation and, if needed, for a consumer complaint.

Step 5 — Escalate to the state transport department or nodal agency

Many EV incentives are administered by the state transport department or a designated nodal implementing agency. Write to them quoting your application number, vehicle number and chassis or VIN, attaching your invoice and the portal screenshot, and asking for the status and the reasons for any delay. Submit it by email and, where possible, in person or by registered post so you have proof of delivery and a receipt date.

Step 6 — Raise a portal grievance and a CPGRAMS complaint

Use the grievance section on the official scheme portal and note the ticket number. If the scheme is a central one or a central department is involved, escalate on CPGRAMS at pgportal.gov.in, selecting the relevant ministry. CPGRAMS is the umbrella grievance system for central government departments. For how to use it well alongside RTI, see our guide on CPGRAMS and RTI together.

Step 7 — File an RTI for the file status where a public authority holds the claim

If the transport department or a public nodal agency is processing your claim, an RTI application can reveal exactly where it is stuck. Ask for the status of your subsidy claim, the movement of the file, and the reasons for any delay or rejection. To file online, see our step-by-step guide to filing an RTI online. If you get no reply within the time limit, use our guide to the RTI first appeal under Section 19.

Step 8 — Use the consumer route if the dealer kept or never claimed your subsidy

If you paid full price expecting a refund that never came, or the dealer collected the subsidy amount from you and did not pass it on or file the claim, this is a deficiency in service or an unfair trade practice. Call the National Consumer Helpline on 1915 and, if it stays unresolved, file in the consumer commission. Keep your invoice, payment proof and the dealer correspondence ready. For the filing process, see our guide on how to file a consumer court complaint.

Escalation ladder

Copy-paste complaint template

Replace the text in square brackets with your own details before sending. Use it for the dealer, the transport department or the nodal agency, adjusting the addressee.

When RTI can help

The Right to Information Act, 2005 applies to public authorities. In an EV subsidy dispute, that typically means the state transport department and the nodal implementing agency that processes claims under the scheme. RTI can be a powerful, low-cost tool in these specific situations:

• Finding out where your claim is stuck: File an RTI with the Central or State Public Information Officer of the transport department or nodal agency. Ask for the current status of your subsidy claim for vehicle [Registration Number] / application [Number], the movement of the file with dates, and the name and designation of the dealing officer.
• Getting the reasons for a rejection or delay: If your claim was rejected without a clear reason, ask for a copy of the order or noting rejecting the claim and the recorded reasons. A vague verbal rejection from a dealer is not the same as the authority's recorded position.
• Confirming budget and eligibility position: Where the dealer claims the budget is exhausted, you can ask whether funds for that phase have in fact been released, and whether a waitlist or next phase applies to pending claims.

To file online, use our step-by-step guide to filing an RTI. The fee for central authorities is generally a small prescribed amount, and state rules vary — check the relevant portal. The Public Information Officer must respond within 30 days. If you get no reply or an unsatisfactory one, use the first appeal under Section 19. For deeper strategy, The RTI Playbook covers using RTI in scheme and subsidy disputes.

When RTI will not help

RTI has real limits here, and it is important to use the right tool for the right problem:

• RTI does not pay the subsidy: It is a tool to access information, not to compel payment. Only the transport department or nodal agency, acting on its own process, can release the money. RTI supports your case; it does not replace the claim or the grievance.
• RTI does not reach a private dealer or manufacturer: A car or scooter dealer and the vehicle maker are private bodies. Their internal records are not accessible through RTI. If the problem is the dealer keeping or not filing your subsidy, the answer is the consumer route, not RTI. See our guide on escalating a private dealer or manufacturer dispute.
• RTI is not the fastest route: The 30-day RTI window is slower than a portal grievance or a CPGRAMS complaint for getting movement. Use RTI to get records and pin down accountability, and run the grievance routes in parallel for speed.

Common mistakes to avoid

• Relying on the salesperson's verbal promise: A spoken assurance that the subsidy will come is worthless as evidence. Get the scheme name, the payment model, the amount and the application number in writing before and after purchase.
• Not noting the application or claim number: Without it, neither you nor any officer can trace the claim. Ask the dealer for it immediately and store it with your invoice.
• Assuming a wrong status means the money is lost: An approved-but-unpaid status usually means a bank or Aadhaar mismatch you can correct. A no-record status usually means the dealer never filed. Each has a different fix; do not panic and write it off.
• Treating a private dealer dispute as an RTI problem: If the dealer collected the subsidy and kept it, RTI cannot reach them. That is a consumer dispute. Pick the consumer route, not an RTI you cannot use.
• Confusing different schemes: Central EV schemes and state EV policies have changed several times and differ widely. Do not assume the amount or rule a friend got in another state, or a year ago, applies to you. Verify the current position for your state and vehicle on the official portal.
• Missing the eligibility fine print: Some schemes apply only to certain vehicle categories, battery sizes, registration windows, or buyer types. If your vehicle was never on the approved list, the claim will fail no matter how hard you chase it — check eligibility first.
• Letting deadlines pass quietly: Some schemes require the claim to be filed within a window of purchase or registration. If the dealer delays past that window, the claim can be barred. Push for written confirmation of filing early.

For related disputes, see our guides on an HSRP number plate not delivered and RTO escalation and on a car warranty claim rejected by the dealer or manufacturer. For other government scheme disbursals stuck in the system, the rooftop solar subsidy guide follows a similar escalation pattern.