Hyderabad: Cases were booked in the BMW case against Mr Martin Linder, director — finance and administration BMW India, Mr Sanjeev Shah, general manager, Financial Services BMW India, Mr Vikranth Singh, general manager-sales, BMW India, and Mr Ralf Bissinger, director-sales and Marketing, BMW India.
Delta Cars had alleged that the company had also misused the working capital limit and kept on increasing it.
According to the Trimulgherry police, BMW supplies cars to dealers, facilitates financing them through its associate firms and decides dealers’ credits. The credit facility is free from interest for a certain duration. As and when the dealer sells a car, he remits the amount to the financing company and clears the credit.
In a remand report, the police stated that the cars are sold within the credit limits and BMW is not supposed to dump cars on dealers beyond the limit. But because of supply or dumping of cars, the dealers suffer financial losses by way of paying interest to the financing company.
“Delta Cars entered into a deal with the company in 2007 and as it was not able to sell the cars, it was forced to sell the cars at cheaper prices, foregoing profits, only to meet the sales targets and clear the finance. It was liable to pay whether the cars were sold or not,” the report read.
The case had been in the High Court and the Supreme Court as well. The apex court had ordered a stay on the investigation and had recently vacated it.
The German Embassy has been intimated about the arrest.
Police said, that it was also found that Mr Schlipf was involved in arbitrarily enhancing the credit limits of Delta Cars, without its knowledge and was also involved in dumping the cars, thereby causing losses.
