FADA seeks govt intervention in UM Lohia India exit case
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FADA further highlighted that the said incidence is now 3rd one after General Motors and Man Trucks' sudden exit from the country.
FADA further highlighted that the said incidence is now 3rd one after General Motors and Man Trucks’ sudden exit from the country.

New Delhi: Automobile dealers’ body the Federation of Automobile Dealers Associations (FADA) on Tuesday urged Prime Minister’s Office and allied ministries viz. Heavy Industries, Road Transport & Highways, Commerce & Industry and Corporate Affairs Ministries to intervene into legal action against bike maker UM Lohia Two-Wheelers over abruptly stopping operations in India.

In October, the industry body through its counsel Khaitan & Co, had issued a legal notice to UM Lohia and its management, calling upon them to redress all grievances of dealers and to take steps to ensure the maintenance and servicing of motorcycles already sold in accordance with the warranty terms and law.

“Having received no satisfactory response from the Company as well as its owners, FADA now has requested the Prime Minister’s Office, Ministry of Heavy Industry & Public Enterprises, Ministry of Road Transport & Highways and Corporate Affairs Ministry calling upon the Government to urgently intervene in the matter,” FADA said in a statement.

The industry body further highlighted that the said incidence is now 3rd one after General Motors and Man Trucks’ sudden exit from the country.

UM Lohia is a joint venture between the Lohia Group and UM Motorcycles, an American motorcycle company. The joint venture was set up in 2016 to manufacture and sell in India ‘American’ style motorcycles under the brand of ‘UM Motorcycles’.

Looking at the plight of the customers who are not getting proper service and spares because of carelessness of the owners and the dealers who are aggrieved by the dishonesty and fraud on part of the management and promoters of UM Lohia, including founders Ayush Kumar Lohia and Jose Miguel Villegas, FADA has taken up this issue and is requesting intervention of the PMO and Allied Ministries.

Due to the plagued relationship between the owners, the statement added, it has caused huge losses to dealers and has exposed them to unwarranted litigation from customers for whom, dealers are the face of the company. Besides business losses which the dealers are facing, the apex body of the lobby further mentioned it has also resulted in creating a bad name in their society and has therefore added to their plight and mental harassment.

“FADA would want to solve this issue amicably as it has done in the previous two cases of OEM’s exiting India. But failing to get any response from UML, there may be no other alternative but to take the final recourse including civil and criminal proceedings,” the industry body said.

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