DNA Investigation: Co offers Rs 25,000 bikes, but plan rides on thin air

R-Bikes, a little known Indian two-wheeler company operating out of Andheri, a Mumbai suburb, is looking to make a splash with an array of superbikes to be manufactured under the 'Make-in-India' initiative.

Going by its website, the company has launched more than 20 two-wheeler models by the company, which includes sports bikes, vintage bikes, touring bikes, lady scooters, standard bikes, racing bikes, smart scooters and off-road bikes, starting from a very attractive price point of Rs 25,000 going up to Rs 5 lakh.

Its website shows pictures of bikes, which, interestingly, are look-alikes of popular bikes and scooters from across the brands available in India. Even the company's logo has an uncanny resemblance to that of a global auto giant from the UK.

An aggressive advertisement campaign, currently on in the regional media, talks about the imminent launch of the bikes and invites people to take up dealership from Maharashtra initially, before it could be rolled across the country.

The dealership business lists four classes -- silver, gold, diamond and platinum -- depending on the investment they can make in the area required for the showroom.

The portal also has several pictures of its bike manufacturing plants, but without giving proper address and details.

The company boasts of being the world's largest bike company in the making and equates itself with Reliance Jio in terms of the huge disruption that it would bring in its wake with its low pricing strategy, according to its portal.

Curiously, none of the industry experts spoken to knew about R-Bikes.

So DNA Money decided to dive deep into the company's activities and understand its business model.

This correspondent posing as a potential dealer for their bikes approached R-Bikes office in Andheri.

Anjali Andhare, an executive there, claimed the company is into 27 verticals including two-wheelers; other major verticals being real estate, media, film production and software.

She gave a visiting card in the name of a group company, Tech MMI Software, that claimed to have its head office at iconic Burj Khalifa in Dubai.

"So far, more than 10,000 bookings have already been made for the retail purchase of bikes while another 600 odd people are vying for the dealership from Maharashtra," Andhare said. She insisted that no money has been taken from anyone so far. The applications for dealerships will be screened before the rollout, she said, adding, dealers can earn profit margins of about 18-25% from each unit sold by them.

Andhare had no answers for the plant capacity or any query around it or the investment being made in the automobile business.

When asked the models on the brochure resembled the existing well-known brands, Andhare said that the photos were indicative and may change.

On the pictures of the plants on the website, she said they were of the manufacturing plants in foreign countries, which R-Bikes leadership had visited.

Andhare added that the company doesn't have any production unit now and is "looking at states like Gujarat and Jharkand" while "talks are on with Pune-based Kinetic Group".

But when contacted, a senior executive from Kinetic Group denied of being aware of any such talks.

The executive also said talks were on with a few leading film and cricket personalities for their brand promotion. To facilitate financing of dealership business and also for retail customers, the company claims to have tied up with Sinhagad Co-operative Bank.

The company is gung-ho on 'Make-in-India' with its pamphlet flaunting a tagline' Now, India will ride India's own bike...' It lists elaborate flow charts for supply chain and investment opportunity.

However, Andhare said the company plans to imports vehicle parts from countries like China, Malaysia and Korea, and then assemble in India. The retail customers can book their vehicle online but all documentation and delivery are supposed to take place from the dealership office close to him/her place of location.

Who are the promoters and investors of the company?

The executive said their business interests span across several sectors of real estate, media, film production and software development. She said Pandit Rathod is its promoter and a former inspector general in Maharashtra police is the chairman.

However, checks threw up some interesting facts.

Several cases are registered against a person with name Pandit Rathod of Landscape Dreams Begin, with the police and other law enforcement agencies in Maharashtra. The latest reported case has been registered on January 24, 2017, under Section 420, 406 of IPC against Rathod in police station in Navi Mumbai. Landscape Dreams Begin is shown as to be sister concern of R-Bikes on the promotional handout given to this correspondent by the executive.

According to the cops, Rathod also has a case of serious offence registered against him in Sangli about five years ago at Aatpadi police station on charges of death of a woman motorist who was killed in a landslide in Katraj Ghat section. As per reports, Rathod had illegally constructed a compound wall on the forest land for plotting a land for sale. The wall collapsed during the heavy rains and hit the victim.

Another FIR has been lodged in Rajgad police station in Pune (rural) area. Further, the website of Maharashtra state CID had earlier declared Rathod as a proclaimed offender on June 10, 2009.

Andhare acknowledged criminal cases against Rathod, but she refused to comment further on it.

Shivaji Awate, a senior inspector at economic offence wing (unit-1) at Navi Mumbai, who is the investigation in-charge of a cheating case in Navi Mumbai against Rathod, said the investigation against him is still going on.

Two detailed questionnaires sent to the company remained unanswered.