U.S. auto dealers, accuse Mahindra & Mahindra of misrepresentation, fraud and conspiracy.
The lawsuit was filed by dealerships in New Hampshire, Florida, California, New Jersey, and Washington, on June 4th, 2012, in U.S. District Court in Atlanta, against Mahindra & Mahindra, Ltd, and Mahindra USA, Inc.
“Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market,” said attorney Michael Diaz. “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.”
Mahindra denies all accusations of misrepresentation, fraud and conspiracy. It is also worth mentioning that a similar law suit was issued against Mahindra and Global Vehicles in the US District Court in Missouri. The Court dismissed all accusation s against Mahindra and ruled that the company couldn’t be held liable for any action of Global Vehicles concerning its dealers.
In February 2012 an International Arbitral tribunal also dismissed similar accusations and claims against Mahindra, this time made by Global Vehicles. Mahindra is currently is the process of enforcing that arbitration award.