The MIDC police have registered an FIR against noted automobile designer Dilip Chhabria following allegations of cheating and criminal intimidation. The complaint was filed by Jayesh Raichandbhai Thakkar, Director of Mercury EV-Tech Limited and co-promoter of DC2 Mercury Cars Pvt. Ltd.
The agreement
The dispute stems from a business agreement in 2024 after Thakkar met Chhabria over vehicle modification work. Thakkar alleged that during a meeting in Mumbai in September 2024, Chhabria proposed a partnership to expand into electric vehicle manufacturing and design, with plans to integrate the existing DC2 automobile customisation business into a new corporate structure. Subsequently, DC2 Mercury Cars Pvt. Ltd. was incorporated.
DC2 Mercury Car. PIC/INSTAGRAM/autojournal_india
The complaint states that in December 2024, Thakkar invested about Rs 2.5 crore to acquire business rights from a proprietary concern allegedly operated in the name of Chhabria’s relatives. A later Share Purchase Agreement reportedly gave Mercury EV-Tech Limited a 70 per cent stake, while a Chhabria relative retained 30 percent ownership.
The investment
Thakkar invested nearly Rs 2 crore toward an automobile expo, employee expenses, and related costs, along with additional Rs 1.75 crore for renovation and operational setup against which no accounting was provided.
Attempt to defame
“I have not received any notice from the police, and therefore the question of cooperation with the investigation does not arise,” Chhabria said, adding, “This appears to be an attempt to defame me and damage my reputation.”
No substantive proof: Chhabria
Calling the allegations baseless, Chhabria said, “We strongly deny all the allegations made against us and maintain that they are baseless, untenable, and unsupported by any legal documents or substantive proof. I also reject the allegations of fund diversion and financial irregularities.
“The documents and claims referred to are incorrect and unlawful, and the funds received were linked to work carried out in my personal capacity.
“Following the execution of the agreements and the Memorandum of Understanding, my role in DC2 Mercury was limited solely to design and development activities. The [Andheri] property is held in my personal name.
Chhabria further stated that any payments received in his personal accounts were related to independent dealings.
Payment diverted
The FIR also claims that a fake leave-and-license agreement for a property in Kondivita, Andheri East, was created, using false information about ownership and leasing to attract investments. Additionally, customer payments for vehicle modification projects were allegedly diverted outside company accounts, including a transaction worth about Rs 1.77 crore in which around Rs 53 lakh was reportedly received in cash and transferred to personal accounts.
Police Speak
Based on Thakkar’s complaint, an FIR has been registered under Section 318(4) (cheating and dishonesty) of the Bharatiya Nyaya Sanhita (BNS), said an officer from the MIDC police station.
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