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Eider Motors Chairman arrested for cheating dealers to the tune of crores

eider-motors-chairman
 

Eider Motors, an Indian company registered in Hyderabad is in the news for all the wrong reasons.

Eider Motors grabbed immediate attention when they announced the launch of affordable sportsbike in India. For eg – CFMoto 650 NK was priced from INR 3.37 lakh. Their entire range, which ranged from 110 cc scooter to 650 cc sports bike, was priced from INR 54,000 to INR 4 lakh.

Such aggressive pricing caught everyone’s attention. Buyers were waiting for dealerships to open, many even mailed us asking for latest updates on Eider Motors. Well, we do have an update.

Eider Motors India

Their Chairman, Mr Maroju Shiva Kumar has now been arrested by the Central Crime Station (CCS) for duping dealers to the tune of INR 10 crore (minimum). Report reveals that atleast 40 dealers from across India were cheated by the Eider Motors Chairman.

36 year old Maroju from Kokapet of Narsingi posted ads across mainstream newspapers that his firm, Eider Motors had procured licenses to produce German and Japanese sports bikes in India. Kumar lured dealers by claiming that Eider Motors had already started manufacturing in India at a plant in Pedda Amberpet, in Hayathnagar mandal. The bikes were certified for BSIII norms at an agency in Gurgaon and were ready to be sold across India.

Dealer partners were told that they would be given INR 50,000 as maintainence amount every month, on top of a minimum commission of INR 6,000 (maximum INR 12,000), on sale of one bike of Eider Motors. These terms and conditions were not only advertized across newspapers, but were also posted on their website www.EiderMotors.com (their website no longer is operational)

Eider Motors dealerships

Trouble started when Eider Motors failed to deliver on promised timeline of launching made in India sportsbikes. Three of the dealers who had invested lakhs, complained to the cops and that is when Central Crime Station personnel stepped in. They started closely following Eider Motors and their Chairman – Mr Maroju Shiva Kumar. Finally, Kumar was arrested and a case has been filed against him.

Each of the 40 dealers who were duped had paid Eider Motors a sum of INR 20-40 lakh each. But when Eider failed to deliver them the bikes to sell, many wanted their invested money back. Kumar refused to give that money back.

via deccanchronicle

 

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YOUR OPINION MATTERS

  • SidewindeR

    Another shattered dream of owning a affordable big Superbike..

  • Comment Karne Wala

    The dealer near my house was open for 1 year. He said the bikes are coming soon several times. Yea…. gone.

  • he must have got inspired by the fraud kawasaki palm beach dealer :p