Audi India Gurgaon dealers, Rash Pal Singh Todd (known as Rashy Todd in media releases of Audi India) and Mandhir Singh Todd were arrested by the Police over a bank fraud of Rs 270 crores. The dealer reportedly took loan from bank to buy cars from Audi India, and sold them to customers. Dealer never repaid bank money.
When the duo were arrested, they were on their way to flee the country. Police managed to catch them before they could board their flight to London. The said dealers used fake documents to get loan from bank. They even lied to the bank about having stocks in hand, when they did not have any.
A well known face in the Delhi-Gurgaon Page 3 circle, Rash Pal Singh Todd and Mandhir Singh Todd were directors of Zenica Cars India, Zenica Performance Cars Private Ltd. The former company operated Audi India Gurgaon dealership, and the latter operated Porsche India Gurgaon dealership.
Together, the Zenica Group had a turnover of Rs 500 crores a year from sales and service of Audi and Porsche cars via these two dealerships. They used to sell about 140 Audi cars every month and about 20 Porsche cars a month. They accounted for one fifth of Audi India’s sales on average.
Zenica Group owned Audi Gurugram, Porsche Centre Gurugram, Audi Approved Plus Audi Delhi Central and Audi Service Gurugram. They also owned the iZenica chain of Apple resellers in the region.
The duo were arrested by Delhi Police’s economic offences wing after HDFC Bank filed an FIR for cheating and forgery on 29th August. In spite of balance sheet showing profit, the directors told the bank that they were running in losses for 4 consecutive years. The matter came to light when the bank performed physical comprehensive stock audit and verification of the various documents submitted by the duo.
The Todd’s are of Indian origin. A report from 2006 states that Rash Pal Singh owned a dealership in the UK as well, which went bust – leaving 76 jobless. It is not clear as to what is to happen of the Audi and Porsche dealerships in Gurgaon. If you are one of their customer, and are awaiting delivery, it is best you get in touch with Audi India officials. Audi India is yet to issue statement.