[lejhoom]

According to Deccan Chronicle, Hyderabad, in a news published on 14 March, BMW India is facing a cheating case registered against it by GVR Infra Projects Ltd., alleging that the car firm had fudged its retail sales figures and sold a defective car.

According to the police, the MD of GVR Infra, complained that he had purchased a BMW 7 car late last year. The wheel alignment of the car was defective. The MD alleged that his enquiries with the car company revealed that these problems were common with "dynamic drive package" and the company was aware of the issue. Despite this the company was selling cars to unsuspecting customers across the nation. He also charged that the car company was luring customers by publicizing false and fudged sales figures.

The car company approached the Andhra Pradesh High Court to seek the quashing of the proceedings. Their contention was that the dispute did not attract criminal provisions and at the highest relate to consumer and or civil dispute.

The court gave green signal to police to go ahead with the investigation but it directed the police not to arrest any company official.

The case is likely to come up for hearing tomorrow.

[canonball]

Consumer laws in India are pathetic no wonder BMW wants to go for consumer court where the cases take 15 years to give any judgement. Our courts and the law need rigorous overhaul and need to be serious as there is too much grey that the establishment/big business hides behind

[srikanths1]

Dude i think you are mistaken here - consumer courts are the fastest in the legal circuit, at-least that is true in TN. But i do have to accept that the award for damages are very pathetic.

Originally Posted by canonball

Consumer laws in India are pathetic no wonder BMW wants to go for consumer court where the cases take 15 years to give any judgement. Our courts and the law need rigorous overhaul and need to be serious as there is too much grey that the establishment/big business hides behind

[agm]

Another sad story,wonder why such worldwide renowned companies take indians for granted? :|

I know many wont agree but then this is the sole reason why so many of indians prefer Maruti over all these big brands,thats what i reckon . Every now and then we have some horror story to read about skoda and other big names . :|

[ph03n!x]

I strongly recommend that all of us hold our guns. I have seen enough half-baked new articles to believe any of them without hard facts - and a few questions do rise in this case:

Do any of us know of issues with wheel alignment and dynamic drive (I have not googled that yet!)?
How does someone conclude that the sales figures are false and fudged? What basis? Fudging sales figures is not a joke!

[canonball]

Sir/pho3n!x fudging statistical data is the oldest trick known to the mechno/post industrial world. If you talk to any insider or even use your own logic and trust me we are intelligent as individuals you will know that a lot of head line data on inflation, price indexes is worked upon and it does not stop there current world financial crisis being a prime eg; The latest lehman moved money from one account to another every time there was an audit. You really seem to be a believer! Did you now that auto journal took upwards of Rs. 25 lacs to give good reports on cars we are talking about mainline Indian automags! I have this on first hand. Fudging and creating accounting just 2 words to the same end my friend.

please read this: http://www.dnaindia.com/money/interv...anding_1359115

It will conclude that America with way it has gone about printing money should be off the Ratings chart yet what is its financial rating as a country?

[aargee]

If the case of BMW is true, then I'm wondering what's happening to these top manufacturers? Aren't such things happeneing abroad? The Skoda's issue needs no introduction, now BMW & not to mention the dealer's issue with Merc (thread - http://www.team-bhp.com/forum/indian...pply-bail.html)

I'm really wondering
1. If these problems happen only with these manufacturers in this country or everywhere & is it just because these are big players, we expect them not to make any mistake & each false move of theirs is getting a big attention?
2. Now, if this happens only here, then is it the problem with us or do they think, they can take the people in India for granted?

Anyway, what's the source of this information?

[genjew]

It will be interesting to see the outcome of this case. For a change the plaintiff will have the deep pockets necessary [and possibly the influence to ensure that it isn't bullied or intimidated] to ensure that justice is carried out.

[diffsoft]

Cheating case against BMW India - Express India

Further this article says that the owner is alleging that BMW is knowingly cheating customers.

This is what Mr Pavan Kumar the victim has to say:

In his petition, Kumar, who has bought a BMW Series 7 car, said the vehicle has problems related to steering and wheels. He told the police that his enquiries with the car company revealed that problems were common and the company was aware of the issue. Despite this, the company was selling cars to unsuspecting customers across the country, he said.

Further "A local jewellery dealer had also filed a similar complaint against BMW last year."

I thought such acts were common place with Skoda, but reading about M Benz and BMW it looks like German engineering may also come with German deceit.

All the best Mr Pavan Kumar, Harish Kanchan and others.

Cheers,

[mxx]

Considering that bmw products are either ckd or cbu, this problem cannot be india specific. Is that prossible?

Originally Posted by agm

I know many wont agree but then this is the sole reason why so many of indians prefer Maruti over all these big brands,thats what i reckon . Every now and then we have some horror story to read about skoda and other big names . :|

yeah right, since maruti introduces models phased by suzuki out worldwide it would have already gone through customer complaints, recalls and fixes cycles. By that logic we will have to be content with phased out products with every manufacturer.

[lejhoom]

Andhra Pradesh High Court has fixed the date of hearing to March 22.

[Turbanator]

In a different case Police arrested BMW Financial Services MD at Gurgaon yesterday . This chap was not even in India in 2010 , Certainly not correct approach by authorities ..

http://www.thehindubusinessline.com/...?homepage=true

[rajushank84]

Wouldn't be surprised if its a true story. BMW is full of "known issues" which come up only after purchase. But I am not sure they will be able to prove a cheating case, since their lawyers worldwide would be familiar (and much experienced, no doubt) with how to deal with these, lemon laws etc.

(Off topic) Just a couple of instances from my own experience in the last year in the US:

- Last year my friend's 328i's power cut off abruply as we were coming down a parking lot ramp. It was scary since the steering, brakes, everything seemed to depend on engine power. Long story short, he had it towed and the service center said its the "usual" water pump issue and replaced it at no cost. Gives me nightmares to think what would have happened if this had happened on the freeway on the fast lane

- My own car (brand new) within 2 months developed a "Drivetrain malfunction" and went into limp mode. The SA nonchalantly referred to it as a known software issue and had it fixed.

[zenren]

Originally Posted by Turbanator

In a different case Police arrested BMW Financial Services MD at Gurgaon yesterday . This chap was not even in India in 2010 , Certainly not correct approach by authorities ..

http://www.thehindubusinessline.com/...?homepage=true

If the complaint was filed against his position of office, it might not matter whether he or someone else was occupying that post. It is a case against BMW and unless BMW states that the previous MD didn't act as per company guidelines and initiates action against him, BMW is liable for the case.

[PPS]

BMW India has issued a press release.

Source: https://www.facebook.com/notes/bmw-i...67314589999251

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. As a consequence, Delta Cars filed lawsuits in 2010 against BMW India Private Limited.

Dr. Stefan Schlipf was appointed Managing Director of BMW Financial Services India Private Limited on 14 April 2013. During the period of allegations (2007 to 2009), Dr. Schlipf was employed in BMW Bank GmbH and was based out of Munich. Dr. Schlipf was not present in India during the period of dispute with Delta Cars. Till yesterday, Dr. Schlipf has never been accused in the lawsuit.

Dr. Stefan Schlipf was arrested by Hyderabad Police in connection with law suit filed by Delta Cars. Dr. Schlipf has been released on bail.

BMW Group India has raised a strong objection to the arrest of Dr. Schlipf with the authorities. Dr. Schlipf was not present in India during the period of dispute. The company considers this incident as completely unacceptable.

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 is taking necessary legal action.

If you have any queries, please contact:

BMW Group India
Abhay Dange, Director, Press and Corporate Affairs
Cell: +91 99 104 81013 Tel: +91 124 4566 600 Fax: +91 124 4566 612
Email: Abhay.Dange@bmw.in