Mahindra Denies Would-Be Dealerships’ Fraud Allegations


Following a lawsuit filed on June 4, Indian automaker Mahindra is refuting the allegations that it $9.5 million cash and an additional $100 million in trade secrets.

“We have seen the press release issued by the legal firm of Diaz Reus and Targ which claims to represent some U.S. automobile dealers,” Mahindra wrote in a press release before denying the allegations of fraud, misrepresentation and conspiracy. That same release points out that the automaker was sued unsuccessfully by dealers in a Missouri court as well.

“Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market,” said attorney Michael Diaz in a press release. “However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments.”

Rewinding to the story’s start, Mahindra was supposed to begin delivering a line of light diesel trucks to dealers in 2008, but that never happened. Four years later, those who paid in to be a part of the deal are still hanging in limbo, growing understandably angry.

After several delays and the company cut ties with the American distributors meant to act as representatives in the North American market, though the plan to sell trucks was supposed to continue forward. Despite that, the promised launch repeatedly moved out of reach.

Now it seems steam is gathering again behind discontented dealers, though a conclusion to the case is unlikely soon.