Used auto parts sellers in Bengaluru are facing an epidemic of scams.
The state’s biggest used auto parts chain, Holbrook Auto Parts, has been hit with over 200 allegations of racketeering and corruption, including over Rs1,000 crore in illegal cash and real estate transactions.
The company has since closed down all its shops and laid down its management structure.
A complaint by the state government’s anti-corruption agency (ACSA) on Wednesday claimed that Holbrook had been operating illegally for more than a decade in the city.
The ACSA is probing whether the company’s managers have colluded with the racketeers.
In an emailed response, Holbrick Auto Parts said it has taken all the necessary steps to tackle the issue and is cooperating with the authorities.
The chain has been under scanner ever since the ACSA was made aware of the scam allegations on April 29.
The department of corporate affairs (DCO) has launched a probe into the matter, the company said in a statement on Thursday.
According to the ACSAs complaint, Holbrock had a history of misappropriating funds.
In May 2016, Holborn Motors, the Bengaluru-based company behind Holbrook, had been taken over by a group of alleged crooks.
The group allegedly took over the company after the DCO had suspended Holbrook from its contracts.
The group was allegedly linked to several other alleged criminals including a former CEO of Mahindra Group.
The complaint further alleged that the group took over other companies including Auto-Zone and Vistara Auto.
Holbrook was the largest used auto part chain in the country with over 1,600 dealers.