Maroju Shiva Kumar, Chairman of Hyderabad-based motorcycle firm – Eider Motors, has been arrested over allegations of fraud. Investigating officials reportedly said a total of 40 individuals had entered into dealership agreements by paying Rs 20 to 40 lakh. The firm also took purchasing orders from some dealers without any permission from concerned authorities.
He reportedly cheated investors by claiming his company had a manufacturing license and production facilities in Gurgaon. Officials suggest that the fraud could amount to Rs 10 crore at least. Furthermore, when the victims approached him asking about their investment, he refused to return their money.
The company claimed it had imported body parts and technology from Japan, while the designs were made in Germany. The company further stated that these imported parts were then assembled at a factory in Pedda Amberpet, in Hayathnagar Mandal in Hyderabad. In addition to that, Kumar’s advertising claimed the bikes met BSIII emission norms and were certified by a testing centre in Gurgaon.
This prompted various investors to approach the chairman in order to open dealerships for the brand. According to reports, his firm even offered a minimum commission of Rs 6,000 to a maximum of Rs 12,000 on each vehicle. Dealers were also told they would receive Rs 50,000 per month towards the maintenance of their showrooms.
We have tried to get in touch with the company regarding the same but there has been no response as yet.