CCS Police has arrested 36-year-old Maroju Shiva Kumar against charges of duping investors to the tune of Rs. 10 crores.
Maroju Shiva Kumar, from Hyderabad, is the chairman of a motorcycle firm Eider Motors. He is accused of allegedly tricking investors from different parts of the country by falsely claiming that Eider Motors possessed manufacturing licences for bikes imported from Germany and Japan. In addition to this, Kumar offered to provide Rs. 50,000/- per month to the investors as maintenance expenses of showrooms, over and above Rs. 6000 to Rs. 12,000/- margin per bike.
With an intent to open dealerships for the bikes, 40 investors entered into agreement with Eider Motors by paying a sum of Rs. 20 to 40 lakhs. The CCS officials are estimating a Rs. 10 crores fraud in this case.
Shiva Kumar ran another company in the name of Nirvana Group of Industries and had proper offices for the same. He even ran a website in the name of Eider Motors. Claiming healthy returns and other benefits on investments, he successfully manipulated investors into believing that his firm held manufacturing licences for imported bikes. This way, he was able to get huge amount of money in the name of setting up dealerships. Kumar also claimed that he had a manufacturing plant in Gurgaon.
Kumar’s fake advertisements claimed that his firm held licenses for importing parts and using technology from Germany and Japan. Investors were made to believe that Eider Motors was a large firm with parts assembly being carried out in Gurgaon. Offices for his other company were located near Jubilee Hills. His firm carried fake licenses and documentation which went unnoticed to the eyes of the investors.
Kumar also took up orders from dealers for purchase of motorcycles. The fraud came to light when cheated individuals approached Kumar for delivery of their orders. Kumar was unable to deliver the order and refused to return investors’ money. The Central Crime Station police took action against Kumar when three of the investors highlighted their ordeal. Subsequently, CCS police arrested Shiva Kumar.
Eider Motors Chairman Arrested
– Maroju Shiva Kumar, from Hyderabad, has been held by CCS Police
– He ran two businesses, in the name of Eider Motors and Nirvana Group of Industries
– Kumar allegedly duped investors by claiming that his firm possessed license to import motorcycles
– 40 investors cheated in the fraud amounting to an estimated Rs. 10 crores