Eider Motors Chairman Arrested For Fraud

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The Chairman of Eider Motors, Maroju Shiva Kumar has been arrested by the Hyderabad City Police for allegedly cheating around 40 investors from across the country. Officials estimate that the money involved could estimate to around Rs. 10 crore.

Then 36 year old native of Kokapet of Narsingi is believed to have attracted investors from across the country by saying he possessed a licence to manufacture motorcycles from Germany and Japan, under his firm's name, Eider Motors.

eider motors chairman

A senior Central Crime Station officer said, "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."

Also Read: Eider Motors Is Looking To Set Up 30 Dealerships In The Next Two Months

According to reports, Shiva Kumar convinced investors saying he had the licence to manufacture motorcycles by importing body parts and technology from Japan, and design ideas from Germany. The motorcycles were to assembled in Pedda Amberpet, in Hayathnagar mandal.

Also Read: Eider CFMoto 650 NK Motorcycle Launches In India For Rs. 3.37 Lakh

The officer said, "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."

Officials claim that a total of 40 investors were lured into the deal by investing around Rs. 20 to 40 lakh. Once Kumar failed to deliver motorcycles, investors asked him for the cash and when Kumar refused, investors filed a complaint.

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Story first published: Tuesday, September 13, 2016, 13:09 [IST]
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