Home »  Money

Top executive of BMW Cars Financial Services arrested under cheating and conspiracy

Saturday, 26 July 2014 - 9:54am IST | Place: Hyderabad | Agency: dna webdesk

BMW Financial Services chief Exectuive officer was arrested for cheating and landed up in judicial custody for two weeks.  Stephen David Schlipf, the top executive of the financial services arm of German auto giant has been implicated under charges of cheating and conspiracy.

Viren Chowdhury had brought charges against BMW in 2010 but BMW had asked for a stay order on the case. After the period of the stay order got over, the police arrested Stephen.

According to media reports he was arrested in Gurgaon and then brought to Hyderabad. BMW India is accused of the wrongdoings primarily and Schlipf is apparently Accused No 6.

BMW gave out a statement condemning the arrest saying Schlipf was not present in India when the dispute happened. It further said, "As one of the most reputed global companies, the BMW Group has very strict compliance guidelines and processes. BMW Group India or any of its directors have not engaged in any wrongdoings and the company will take necessary legal action."

Chowdhury's Delta Cars Private Limited was a BMW dealer in Hyderabad from June 2007 to December 2009. The dealership agreement expired on 31 December 2009, in the absence of a further term renewal. Chowdhury claimed that BMW Financial Services had augmented the credit limit without even telling them and started dumping it with more and more stock. As a result the car dealer was announced as a defaulter in 2010. As a result, Delta Cars filed lawsuits in 2010 against BMW India Private Limited, the car maker said. 

In its complaint, Delta Cars alleged that it incurred losses due to pressure of excess supply of cars, which ultimately resulted in a heavy interest burden, leading to financial losses.

Stefan Schlipf was appointed Managing Director of BMW India Financial Services Private Limited on 14 April 2013. During the period of allegations, between 2007 and 2009, Schlipf was employed in BMW Bank GmbH and was based out of Munich, the BMW statement said.

Schlipf was not present in India during the period of dispute with Delta Cars and until on Friday, Schlipf has never been accused in the lawsuit, the BMW statement said.


With inputs from PTI

Jump to comments

Recommended Content