[mkaysaw]

Just came across this news article:

https://www.ndtv.com/india-news/2-gu...ome-topstories

It mentions two gurgaon companies operating from Gurgaon Sec 53 with "high-end cars" for being in trouble with the law. Looks like the same names crop up in this article aswell:

https://www.birminghammail.co.uk/new...ires-row-24622

Have a car on order with them and wonder what Audi India does to secure customers' interests / How it affects me?

[Turbanator]

Originally Posted by mkaysaw

Just came across this news article:

Have a car on order with them and wonder what Audi India does to secure customers' interests / How it affects me?

Yes, both Porsche Gurgaon and Audi Gurgaon are owned by the same people. And the promoters are indeed from the UK and had some issues with Auto dealerships there as well. They were doing good in the initial Years but things are very different for the past few years. Hope you have not paid a large Advance, but if you have, then get in contact with Audi India directly ASAP. There was some advertisement in the recent past where Audi was looking for a new dealership in Gurgaon, so there must be some development. Both of their showrooms were relatively empty for the past few months. One of our fellow members is yet to see his TCS credit for a Porsche he bought many months ago so I won't be surprised if there are more skeletons in the closet.

[mayanksabharwal]

A quote from Audi India press release from the past

"In the closest competition ever seen at the awards, Audi Gurgaon under the leadership of Mr. Rashy Todd, Audi Coimbatore under the leadership of Mr. C. Anandkrishnan and Audi Karnal under the leadership of Mr. Chirag Gupta came out on top of the much coveted Dealer Partner of the Year 2015 in their respective categories."

[honeybee]

https://m.timesofindia.com/city/delh...w/65640878.cms

The dealers have been arrested at IGI airport for a 270 crore loan default, as reported by ToI today.

[SmartCat]

They seem like amateurs when compared to luminaries like Nirav Modi, Choksi, Mallya and the Rotomac guy. What kind of bank scamster gets caught at IGI trying to flee the country?

Key takeways for future bank scamsters:

1) Ideally, after getting access to bank funds, you should have settle down in some island in the Pacific Ocean, and let some relative (whom you don't like much) manage day to day operations in India

2) Always target PSU Banks like PNB, BOB, SBI etc and stay away from the likes of HDFC Bank, which is one of the best managed banks in India. If you prefer private banks, make sure you are golf buddies with spouse of Chairman/MD of such bank.

3) Shoot for sky and take loans worth thousands of crores. Even the pen manufacturer Rotomac managed to get Rs. 3,500 crores. What's the point in taking loan worth just Rs. 100 or Rs. 200 crores?

[libranof1987]

The alarming number of businesses (or rather, those running them) being indicted for financial fraud is staggering. And it's happening across industries and scale. Corporate governance has turned out to be quite a joke.

In this case, hope those with outstanding bookings are not left in the lurch. What Audi does should be important.

Originally Posted by smartcat

Key takeways for future bank scamsters

Sarcasm level: Boss.

[vharihar]

Originally Posted by libranof1987

The alarming number of businesses (or rather, those running them) being indicted for financial fraud is staggering. And it's happening across industries and scale.

Its bcoz we rarely convict anybody. Moreover, even when we do have a conviction eventually, we Indians have a contrived sense of sympathy (we go lenient on aged fraudsters and popular folks like filmstars/politicians, or give into claims of their need for medical problems, etc).

Whereas see whats happening in the developed world. Just today I read an article about a lady medical doctor of Indian origin in Saratoga (California) named Dr Vilasini Ganesh, who got convicted this week for medical insurance malpractice. The judge Lucy took just 8 weeks to preside the court and award the verdict, viz. 5 years prison time.

Unless our conviction rate is high (meaning judgements awarding prison time) regardless of who the accused is, there will be no deterrent to future fraudsters.

[ritz3645]

This event is the reality after a storm. Developed world or Developing world, both had a phase of easy money or oversupply of liquidity, now undergoing contraction. Weak link breaks first. I will not blame the bankers as the proprietor of this event - The Fed is responsible for this global catastrophe.

[GTO]

Gosh, the VW group really has a knack for picking 'gems', isn't it? We all know of Skoda's rotten dealers, while Audi & Porsche have both worked with Chordia - related thread.

This scam is more common than we'd think among dealerships. Basically, every dealer requires finance for their inventory (say, 150 unsold cars in their stockyard). A bank offers finance on these unsold cars; it's safe because its a secured loan (the car is the collateral). However, many ingenious dealers sell off the car, but tell the bank that it's still unsold. Thereby, continuing the loan. Most dealers do this on a short-term basis to meet working capital requirements, but it's a slippery slope. Once you are addicted to this easy money, it becomes like a drug. If & when the bank does an audit of your inventory, you are finished (I believe HDFC did an audit of their forged documents as well as inventory).

Zenica was a big, big dealer enjoying amazing volumes of high-margin cars. The primary reason for their failure is mismanagement. Other than that, there was simply no reason for such a dealership to fail. Related thread.

If these guys would have played it clean, they would have been raking in the moolah while also retaining their reputation & self-respect.

This type of scam was part of the main plot in Fargo:

https://www.youtube.com/watch?v=EB4PmbfG4bw

[Engine_Roars]

I somehow fail to understand how can someone just live off someone else's money. Here, I lose my sleep If I have a loan of few hundreds on me. Not sure what has changed but off late seeing so many such cases. Looks like banks are getting more vigilant after the recently unearthed scams.

[//HB]

A lot of prospective buyers surely are worried by this - but their business interests have expanded beyond cars as well. People who have paid the advances need to be on the look-out, but so do the lenders / suppliers to this and their other businesses.

They will be finding a way out of custody, and then the case will be interesting - will they make good their dues ?

[captain.torque]

Slightly off topic but if anyone sees the arrest of Todds as a success of the security and intelligent agencies then you couldn't have been more wrong!

Going by how the system works in our country, I am 100 per cent sure these guys did not have the right contacts in the right ministries and the bureaucracy otherwise they would have been sipping pina coladas on Canary islands right at this moment while we the common folks would have been discussing how some defaulters managed to flee the country yet again.

As smartcat said in his post above, the Todds were indeed amateurs. The Choksis, Modi and Mallyas must be having a hearty laugh!

[G V Krishna]

Originally Posted by Turbanator

One of our fellow members is yet to see his TCS credit for a Porsche he bought many months ago so I won't be surprised if there are more skeletons in the closet.

This is very common and I can even name few Govt. Organizations/PSU which did not credit the Income tax deducted from employees to the IT Department. Poor Employees were served notices from IT sleuths and had to run around CAs unnecessarily to prove their innocence. No surprise private players & doomed companies pulling this trick.

Originally Posted by smartcat

They seem like amateurs when compared to luminaries like Nirav Modi, Choksi, Mallya and the Rotomac guy.

Though this is said sarcastically, this is the new business trend and 100% true. Of course I did not expect good governance from PSU banks, the conflict of interest case with Chanda Kochhar and possible misuse of her role as Chairperson of ICICI bank with Videocon promoters is flabbergasting and is a visceral disgust for fair practice and open banking.

Originally Posted by vharihar

Its bcoz we rarely convict anybody. .

This is what is missing in Indian Judiciary. Justice Delayed is Justice Denied.
And of course justice is being delayed because honorable Judges are forced to wait along with low life peasants like us along the toll gates across the country.

Originally Posted by Engine_Roars

I somehow fail to understand how can someone just live off someone else's money.

Buddy, people like you and me having something called conscience, which is missing in some people.

[//HB]

Originally Posted by mkaysaw

Have a car on order with them and wonder what Audi India does to secure customers' interests / How it affects me?

PUSH - Make as much noise as you can - shake up the system at the manufacturer - create a ruckus at their showroom during peak hours.

The early bird gets the worm (before other hungry creditors block the entrance). Good luck.

[Alfresco]

They were caught because all passport nos are now linked with your DIN, which in turn links with all your firms and their PAN and your PAN and all other directors of your firm.
KYC of directors is now a regular affair and all loans to corporates are going to a central database where a red flag goes up as soon as there is any kind of default or reporting by banks of investigation.
This alert against the passport is used by Immigration authorities to stop you from boarding and you are then held by the CISF to be handed over to the concerned authorities.