Hyderabad: Personnel from the Central Crime Station have arrested the chairman of a city motorcycle firm for allegedly cheating at least 40 investors from across the country. Officials estimate the fraud could be in the range of at least Rs 10 crore.
Maroju Shiva Kumar, 36, from Kokapet of Narsingi, is believed to have attracted investors by claiming that his firm, Eider Motors, possessed manufacturing licenses for bikes imported from Germany and Japan. The CCS police had started investigating Kumar shortly after complaints from three individuals who said they had invested lakhs of rupees to become dealers of the vehicles.
Police revealed that Shiva Kumar was also running another company called Nirvana group of industries with offices at Road number 36 of Jubilee Hills.
“Kumar had even advertised in the newspapers and had a website — eidermotors.com. Official documentation said his firm held manufacturing licenses for motor bikes and scooters. He also claimed he had manufacturing units in Gurgaon,” a senior official with the CCS said.
He managed to convince investors that his firm was importing body parts and technology from Japan and designs from Germany adding the parts assembly was being carried out at a factory in Pedda Amberpet, in Hayathnagar mandal, the official said. Kumar’s advertising claimed the bikes met BS-III emission norms and were certified by a testing centre in Gurgaon.
“Investors from across the country had approached Kumar with an interest in opening dealerships for the bikes. His firm even offered a minimum commission of Rs 6,000 to a maximum of Rs 12,000 on each vehicle. All the dealers were also told they would receive Rs 50,000 per month towards the maintenance of their showrooms,” the official added.
Investigating officials said a total of 40 individuals had entered into dealership agreements by paying Rs 20 to 40 lakh to Kumar’s company. “The firm also took purchasing orders from some dealers without any permission from concerned authorities. But later, the suspect failed to deliver vehicles and when the victims approached him asking about their investment, he refused to return their money,” a source close to the investigation said.