Rs.11 Crore Fraud in the name of VW alias Vashishta Wahan

aadix · 13th July 2005, 18:35

Quote:

Originally Posted by satish_appasani

Could also be that few ministers of AP governement are partners of this desi VW company to make quick money..

the tdp and the bjp are gonna use this scam as a leverage for a long long time!

Mpower · 13th July 2005, 18:46

The fact that they were ready to pay the bribe shows how desparate to get VW to put up a plant there.

I've never heard of the GOvt bribing the company, usually its the other way around.

Steeroid · 13th July 2005, 21:30

Quote:

Originally Posted by Mpower

The fact that they were ready to pay the bribe shows how desparate to get VW to put up a plant there.

I've never heard of the GOvt bribing the company, usually its the other way around.

If you read through the article, you will realise that the 11 crore is not a bribe. The 11 Crore was actually "invested" as the Government's "equity" in the new project. Obviously it was "invested" in a fictitious company, and it will never be shown as expenditure. Instead the 11 Crore would have continued to be shown as an 'investment' made by the Government of AP. An investment with zilch returns and 100% loss of capital....if this hadnt been raked up now, everyone would've forgotten about this 'investment' eventually - thats what the guys bet on.

Say goodbye to 11 crores, AP. All ye TBHPians in AP, thats a bit of your money gone somewhere, too...

Steeroid · 13th July 2005, 21:32

Quote:

Originally Posted by sandeepmdas

So within a couple of weeks from now a "high-level delegation" will be touring Deutschland....

After that expect another "high-level" team chasing Schuster , the fugitive former VW executive all over EU?

Or will the VW engineers use the "high-level delegates" as crash-test dummies?

The AP chief minister is in the UAE these days...the rulers of Abu Dhabi had recently picked up a major stake in VW - I wonder if there is a connection.

sandeepmdas · 22nd July 2005, 15:21

UPDATE: VW agrees to pay back AP the swindled amount.

http://in.rediff.com/money/2005/jul/22volks.htm

German carmaker Volkswagen AG will pay Andhra Pradesh government nearly euro 2 million ($2.4 million) in damages suffered due to the 'illegal actions' of a former manager at the centre of bribery in a scandal.

Volkswagen said in a statement that the payments were compensation for losses incurred by Andhra Pradesh, following the 'allegedly illegal actions' of former Skoda board member Helmuth Schuster, who resigned on June 15.

Schuster, who is under investigation by German prosecutors, 'deceived the state of Andhra Pradesh by acting without authority' by demanding payments for setting up a factory in India.

Volkswagen said it was investigating the situation and asked Indian authorities for help in finding anyone involved in the affair.

The move is the latest in a widening scandal that has triggered the resignation of several top managers, including the former personnel chief Peter Hartz -- one of Germany's best-known business executives.

Earlier this month, Volkswagen filed criminal complaints against Schuster and another former employee, Klaus-Joachim Gebauer, who was fired from Volkswagen's personnel department.

satish_appasani · 23rd July 2005, 00:14

Though the local media reported that they received an Email from VW that the money will be returned, there is no official news from AP govt.

Actually those funds were reserved for VW during Naidu regime. Then they lured the VW that they will spend that amount to buy ambulances from VW if they set up the factory in AP. After the new govt. cam in, they went step ahead and intended to have a small share in VW India and so they converted those reserved funds in to capita.

sandeepmdas · 2nd August 2005, 10:10

http://www.hindu.com/2005/08/02/stor...0206820600.htm

HYDERABAD: Frank Elbe, visiting special envoy of the German automobile major, Volkswagen, on Monday made it clear that the company was interested in its car project in the State.

He said his visit here was meant to confirm their intention to enter Indian market.

"We are talking about the project," he clarified to reporters when asked to elaborate on Indian market.

Mr. Elbe had an hour-long meeting with the Chief Minister, Y.S. Rajasekhara Reddy, at the Secretariat here when both agreed to put behind the Rs. 11-crore scandal, which rocked the project, and continue their good relations towards grounding the unit.

Mr. Elbe handed over a letter from the Volkswagen Chairman, Bernd Pischetsrieder, to the Chief Minister confirming the firm's interest in the project.

Addressing a joint news conference after their meeting, Dr. Reddy said the letter sought to bury the controversial deals of the former Volkswagen representative in India, Helmuth Schuster, while reaffirming its commitment to the project. This, he described, as a confidence-building measure.

Dr. Reddy said the VW Chairman had confirmed that the damage caused to the Government by Schuster's illegal dealings would be compensated. He wanted pro-active support of the Government for the project to materialise.
Mr. Elbe's visit had helped clear the suspicion on the project, he said.

He said the State Government's team which was scheduled to visit the Volkswagen headquarters, Wolfsburg, to finalise the deal would keep its date at the `earliest.'

Mr. Elbe said the project was put on hold temporarily because of the unfortunate incidents in the recent past. Asked whether he referred the "temporary hold-up" to the investigation into the fraud or a step forward in implementation of the project, Mr. Elbe replied that it was the latter. He said he could not comment on the status of investigation into the scam in Germany.

The CBI inquiry ordered by the State Government was not a matter of concern to Germany.

The VW envoy said both sides were preparing for the Wolfsburg meeting.

13th July 2005, 18:46	#17
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,409 Thanked: 1,730 Times View My Garage	The fact that they were ready to pay the bribe shows how desparate to get VW to put up a plant there. I've never heard of the GOvt bribing the company, usually its the other way around.
	() Thanks

22nd July 2005, 15:21	#20
sandeepmdas Senior - BHPian Join Date: Feb 2005 Location: Varkala Posts: 1,537 Thanked: 2,490 Times	UPDATE: VW agrees to pay back AP the swindled amount. http://in.rediff.com/money/2005/jul/22volks.htm German carmaker Volkswagen AG will pay Andhra Pradesh government nearly euro 2 million ($2.4 million) in damages suffered due to the 'illegal actions' of a former manager at the centre of bribery in a scandal. Volkswagen said in a statement that the payments were compensation for losses incurred by Andhra Pradesh, following the 'allegedly illegal actions' of former Skoda board member Helmuth Schuster, who resigned on June 15. Schuster, who is under investigation by German prosecutors, 'deceived the state of Andhra Pradesh by acting without authority' by demanding payments for setting up a factory in India. Volkswagen said it was investigating the situation and asked Indian authorities for help in finding anyone involved in the affair. The move is the latest in a widening scandal that has triggered the resignation of several top managers, including the former personnel chief Peter Hartz -- one of Germany's best-known business executives. Earlier this month, Volkswagen filed criminal complaints against Schuster and another former employee, Klaus-Joachim Gebauer, who was fired from Volkswagen's personnel department.
	() Thanks

23rd July 2005, 00:14	#21
satish_appasani Senior - BHPian Join Date: Jun 2004 Location: Hyderabad Posts: 1,112 Thanked: 104 Times View My Garage	Though the local media reported that they received an Email from VW that the money will be returned, there is no official news from AP govt. Actually those funds were reserved for VW during Naidu regime. Then they lured the VW that they will spend that amount to buy ambulances from VW if they set up the factory in AP. After the new govt. cam in, they went step ahead and intended to have a small share in VW India and so they converted those reserved funds in to capita.
	() Thanks

2nd August 2005, 10:10	#22
sandeepmdas Senior - BHPian Join Date: Feb 2005 Location: Varkala Posts: 1,537 Thanked: 2,490 Times	UPDATE: VW to continue with the plans. http://www.hindu.com/2005/08/02/stor...0206820600.htm HYDERABAD: Frank Elbe, visiting special envoy of the German automobile major, Volkswagen, on Monday made it clear that the company was interested in its car project in the State. He said his visit here was meant to confirm their intention to enter Indian market. "We are talking about the project," he clarified to reporters when asked to elaborate on Indian market. Mr. Elbe had an hour-long meeting with the Chief Minister, Y.S. Rajasekhara Reddy, at the Secretariat here when both agreed to put behind the Rs. 11-crore scandal, which rocked the project, and continue their good relations towards grounding the unit. Mr. Elbe handed over a letter from the Volkswagen Chairman, Bernd Pischetsrieder, to the Chief Minister confirming the firm's interest in the project. Addressing a joint news conference after their meeting, Dr. Reddy said the letter sought to bury the controversial deals of the former Volkswagen representative in India, Helmuth Schuster, while reaffirming its commitment to the project. This, he described, as a confidence-building measure. Dr. Reddy said the VW Chairman had confirmed that the damage caused to the Government by Schuster's illegal dealings would be compensated. He wanted pro-active support of the Government for the project to materialise. Mr. Elbe's visit had helped clear the suspicion on the project, he said. He said the State Government's team which was scheduled to visit the Volkswagen headquarters, Wolfsburg, to finalise the deal would keep its date at the `earliest.' Mr. Elbe said the project was put on hold temporarily because of the unfortunate incidents in the recent past. Asked whether he referred the "temporary hold-up" to the investigation into the fraud or a step forward in implementation of the project, Mr. Elbe replied that it was the latter. He said he could not comment on the status of investigation into the scam in Germany. The CBI inquiry ordered by the State Government was not a matter of concern to Germany. The VW envoy said both sides were preparing for the Wolfsburg meeting.
	() Thanks