Eider Motors has been declared as a fraud company by the authorities as the owner of the company has been arrested over allegations of cheating.
Hydrabad-based Eider Motors’ story is that of a classic case of someone trying to get very rich very fast using unfair means. The company had very gala origins among socialite circles and it even launched six 2-wheelers, even though there were no prior announcements, or test mules of the vehicles. Now, the company has finally met its fate and has been declared a fraud corporation as the owner of the company has been arrested by the police for reportedly duping investors to the tune of Rs. 10 crores.
Eider Motors’ founder and owner Shiva Kumar has been taken into custody by the police as he had reportedly duped investors by claiming that his company had a manufacturing license, and even production facilities in Gurgaon. Official figures suggest that the fraud could amount to Rs. 10 crores at least. The company launched six products (four bikes and two scooters) way back in 2014.
Reports indicate that 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 also had a website displaying its various products but it was riddled with errors such as unrealistic pricing of products and comical product descriptions such as windshield wipers, heated rear windows, etc.
The police claims that over 60 cases have been registered against the company across the country, as various investors had approached Eider Motors in order to open dealerships for the brand. The company collected money from investors but once the amount was paid, the company didn’t supply two-wheelers to the dealerships, forcing them to approach the authorities.
Eider Motors Declared As A Fraud Company
– The founder and owner of Eider Motors has been arrested for fraud
– The company has cheated investors to the tune of Rs. 10 crores
– The company had launched dubious products in the market