Eider Motors Chairman arrested over fraud

Maroju Shiva Kumar, Chairman of Hyderabad-based motorcycle firm - Eider Motors, has been arrested over allegations of fraud. Shiva Kumar reportedly duped investors by claiming his company had a manufacturing license, and even production facilities in Gurgaon. Officials suggest that the fraud could amount to Rs. 10 crore at least.

Eider Motors claimed that they imported body parts and technology from Japan, while the designs were made in Germany. The company further stated that these imported parts were then assembled at a factory in Pedda Amberpet, in Hayathnagar mandal in Hyderabad. The company launched six products (four bikes and two scooters) in 2014.

This prompted various investors to approach Shiva in order to open dealerships for the brand. Shiva started collecting money from such investors, allowing them to open Eider dealerships across the country. But once the amount was paid, the company didn't supply two-wheelers to the dealerships.

The police has claimed that Eider's motorcycles didn't have appropriate certifications from Government approved agencies. This made them unworthy to be registered and thus the dealerships could not sell the bikes. The police also claims that over 60 cases have been registered against the company across the country.

Source: Deccan Chronicle