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The XI Additional Chief Metropolitan Magistrate in Secunderabad on Saturday granted conditional bail to Stefan David Schlipf, MD and CEO of BMW Financial Services, in a cheating case filed by a former BMW dealer against the German company arm in India.
After hearing the arguments today, the Court granted conditional bail to the executive, directing him to cooperate with the investigation and be present for questioning during the probe.
The Court said any violation of these directives, including reporting on the first of every month, until further orders, will mean cancellation of the bail.
The Hyderabad Police had arrested Stefan David Schlipf in a cheating complaint filed by Viren Chowdary of Delta Cars against the BMW arm for allegedly causing loss of Rs 4 crore.
The official was arrested by the Trimulgherry police on Thursday at Gurgaon and brought to Hyderabad and produced in a local court on Friday, when he was remanded to judicial custody for 15 days.
In the past, the BMW representatives had filed cases in higher courts and had secured stay in the proceedings.
However, with the matter coming up again, the BMW executive was arrested and produced in the court, where he was remanded to judicial custody.
Since the arrest involves a foreign national the German embassy was informed about the development.
According to BMW, the case was filed by the former dealer from Hyderabad after non-renewal of the dealer contract in 2009.
Delta Cars was a BMW dealer in Hyderabad from June 2007 to December 2009. The dealership agreement expired on December 31, 2009.
In the absence of a further term renewal, Delta Cars filed lawsuits in 2010 against BMW India.
Stefan Schlipf was appointed Managing Director of BMW Financial Services India on April 14, 2013. During the period of allegations (2007 to 2009), Schlipf was employed in BMW Bank GmbH and was based out of Munich. He was not present in India during the period of dispute with Delta Cars.
Till yesterday, Schlipf was never accused in the lawsuit.
BMW Group India has raised a strong objection to the arrest of Schlipf with the authorities as he was not present in India during the period of dispute.
The company stated as a global company, the BMW Group has strict compliance guidelines and processes. BMW Group India or any of its directors has not engaged in any wrongdoings and the company is taking necessary legal action, the statement said.
Dealers express support to Stefan
The Dealer Council of BMW Group India today in a statement said Stefan Schlipf has been closely associated with BMW India Dealers since his appointment as Managing Director of BMW Financial Services India Private Limited on 14 April 2013.
The arrest of Stefan Schlipf by Hyderabad police in connection with law suit filed by Ex–Dealer from Hyderabad is unjustifiable, they said.
They further stated Schlipf cannot be subjected to such harassment as he was not present in India during the period of dispute (2007 to 2009).
Stefan Schlipf is an individual of high repute and has always worked in the interest of the dealers.
The entire Dealer council of BMW India said it stands united on this issue and with Stefan Schlipf and BMW Financial Services India.
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