[v12]

According to various news sources, Dilip Chhabria has been arrested by the Crime Branch for cheating.

https://www.indiatoday.in/cities/mum...982-2020-12-28

[PratikPatel]

Well, was kind of expected. There have been proceedings filed at the National Company Law Tribunal initiating CIRP process for cheque’s bounced by his company Dilip Chhabria Design Pvt. Ltd. Also his warehouse were sealed for defaulting on loans from some banks.

[GTO]

Seems to be related to an Avanti? Picture from the same source:


Based on what I have heard, DC / his companies have wilfully defaulted on loans. If you can swindle banks, you most certainly can cheat individual customers.

Further details awaited. What a fall from grace for DC. At one time, his was the best known brand for visual mods in India.

Linking to his bankruptcy thread (DC Design in talks with carmakers for capital infusion. EDIT: Runs out of cash)

[fhdowntheline]

This may be slightly OT- but it brings back the age old problem of Indian business. Getting bankrupt is not a crime. Wilful default is an issue- but what are the banks doing in terms of due-diligence while piling on the loans? Why cant they scrutinise the accounts more rigourously? I feel that the banks are almost equally responsible for the eventual wilful defaults. Today's banking has suddenly leapfrogged from being a quasi-government - person-dependent to being completely a technology platform, with jazzy IT systems, thereby removing the most important element - human control. How many times have we heard this phrase from the bank officials "Sir I cant do this because of the system"?
The same system can however not signal a potential financial default.

[Nithesh_M]

Look at the faded paint on that Avanti compared to the cop Sumo. Also I'm surprised he wasn't arrested for crime against cars turning average Joe cars into puke worthy contraptions for a ridiculous price.

[Guna]

Originally Posted by Nithesh_M

Look at the faded paint on that Avanti compared to the cop Sumo. Also I'm surprised he wasn't arrested for crime against cars turning average Joe cars into puke worthy contraptions for a ridiculous price.

In fact making structural changes to a car itself is illegal. I am sure many of his creations involved major changes.

[SmartCat]

Originally Posted by fhdowntheline

Wilful default is an issue- but what are the banks doing in terms of due-diligence while piling on the loans? Why cant they scrutinise the accounts more rigourously? I feel that the banks are almost equally responsible for the eventual wilful defaults.

Of course banks are responsible for willful defaults. More specifically, it is corrupt bank officials. We previous assumed this corruption was limited to PSU Bank employees. But after Yes Bank/DHFL & ICICI Bank/Videocon wilful default case, it looks like the rot runs a lot deeper in the banking system.

[GTO]

What a thief! Damn scamster.

Moreover, the CIU sleuths detected that multiple loans, averaging to Rs 42 lakh per vehicle, were taken on around 90 such cars by DCDPL, posing as customers for their own manufactured vehicles. Subsequently, these hypothecated cars were sold to other customers before or after availing the finance through fraudulent means, and the exact quantum of loss to the government by way of unpaid taxes, customs duties, GST, etc. is being ascertained. In this manner, the CIU suspects that the DCDPL - founded in 1993 and going bankrupt in 2018 - may have cheated many finance companies or NBFCs like BMC Financial Services.

Source



Source

[CEF_Beasts]

So all DC Avantis sold from 2012-2016 have the same engine and chassis number . Poor owners who must have bought one!

[v12]

I believe the issue is that DC cars especially the Avanti is registered in the name of DC as the first owner and then sold to the buyer. So the owner is always the second owner on paper. Please correct if I have missed anything.

[PratikPatel]

Originally Posted by v12

I believe the issue is that DC cars especially the Avanti is registered in the name of DC as the first owner and then sold to the buyer. So the owner is always the second owner on paper. Please correct if I have missed anything.

Right. Essentially, he found a creative way to create ‘sales’ that would allow him to recover all his investment and pad up the balance sheet by showing all these cars as sold, when in reality they would just be sitting in the warehouse. It is also possible that he did a ‘John Delorean’ on the banks and other investors.

[payeng]

A classic case of the Business Owners losing Focus and venturing on to other (risky) ventures.

DC should have continued to do what it did best. i.e make custom mod jobs. Instead of foraying into trying to make and sell what "looks" like "performance supercars".

[parrys]

Originally Posted by payeng

DC should have continued to do what it did best. i.e make custom mod jobs.

Well, I am glad this would be the end of their modifications business. It used to hurt my eye.

The latest THAR modification was

[gthang]

Used to think his designs were criminal in a metaphoric sense. Guess he was being quite literal.

Hope the twisted scalpel and vinyl coated MDF carpentry will take a break.

Cheers

[speed_edge]

Originally Posted by CEF_Beasts

So all DC Avantis sold from 2012-2016 have the same engine and chassis number . Poor owners who must have bought one!

Wondering this couldn't be possible without any Govt. officers involvement. All the cars have to go through the registration process and Engine/Chassis number have been mandatory documented in RC book. Wondering how can system allow same numbers for all the cars? Probably hand-in-glove with few in powers.

I guess some of them would have used same RTO to register the cars.

Regards
SE