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The Hyderabad police has arrested 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.
The complaint was filed by Viren Chowdary of Delta Cars against 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.
He was remanded to judicial custody for 15 days.
Delta Motors, a former dealer of BMW cars in Hyderabad had filed a case against the German automotive company in 2010 contending that BMW and its top executives had cheated the dealership causing financial loss by setting stiff business targets.
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.
The BMW executive and his team of lawyers are expected to move a bail petition on Saturday.
Since the arrest involves a foreign national, the German embassy has been informed about the development.
BMW India raises strong objection to arrest
BMW India in a statement said: "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. As a consequence, Delta Cars filed lawsuits in 2010 against BMW India Private Limited.
"Stefan Schlipf was appointed Managing Director of BMW Financial Services India Private Limited 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. Schlipf was not present in India during the period of dispute with Delta Cars. Till yesterday, Schlipf has never been accused in the lawsuit.
"BMW Group India has raised a strong objection to the arrest of Schlipf with the authorities. 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."
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