At Mercedes India, a financing mess10 min read . Updated: 13 Jul 2022, 12:52 AM IST
- The luxury auto maker’s financing arm is grappling with recovery of bad loans and allegations of poor and potentially improper lending decisions
- In May, the RBI imposed a penalty of ₹5 lakh on Daimler Financial Services for failing to promptly report a fraud. The incident, here, isn’t clear but, there’s a disturbing pattern.
MUMBAI : Last September, Paasha, the rooftop lounge of the JW Marriott hotel in Pune, hosted a farewell party for a departing chief executive officer (CEO) that went on till about 11 pm. It is said to have been thrown by the CEO himself, with only 60 people—the leadership team and executives one level below—invited. The booze flowed freely and the food was sumptuous. That ‘unofficial’ party, however, proved to be an accounting nightmare for Daimler Financial Services India, the Indian financing arm of the global auto giant known for the Mercedes brand of luxury vehicles, according to company insiders. It was allegedly hosted by Manish Thakore, its chief executive, at the company’s expense. Thakore was moving out to take up the chief financial officer position at Daimler India’s trucking division.
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