"Dr. Stefan Schlipf was arrested by Hyderabad Police in connection with a law suit filed by Delta Cars. He has been released on bail. 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," BMW said in statement.
Delta Cars Private Limited 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.
According to the court remand report, Schlipf was arrested in Gurgaon on Thursday and brought to Hyderabad yesterday on a transit warrant. He was produced before the court which sent him in remand.
Schlipf was appointed Managing Director of BMW Financial Services India Private Limited on April 14 2013. Schlipf was not present in India during the period of dispute with Delta Cars. Till yesterday, Schlipf has never been accused in the lawsuit, the BMW statement said.
The Dealer Council of BMW Group India in a separate statement said it strongly objects to the arrest of Schlipf.
"The arrest of Stefan Schlipf by Hyderabad Police in connection with a law suit filed by exdealer from Hyderabad is totally unjustifiable. Schlipf cannot be subjected to such harassment as he was not present in India during the period of dispute (2007 to 2009)," the statement from the Council said.
The entire Dealer council of BMW India stands united on this issue and is in complete consensus with Schlipf and BMW Financial Services India, it further said.