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Porsche Says Suit by Fired Indian Importer ‘Baseless’

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(Corrects name of the Indian company in story originally published on Jan. 17.)

Jan. 17 (Bloomberg) -- Volkswagen AG’s Porsche said criminal allegations by a former Indian importer that the maker of the 911 sports car breached contractual obligations by terminating its services were “baseless.”

A court in the northern Indian state of Rajasthan had issued a bailable warrant for Porsche Chief Executive Officer Matthias Mueller in November after Precision Cars India Pvt. filed a complaint alleging cheating, breach of trust and criminal conspiracy against the German company. Precision, a distributor of Ducati motorcycles and Ferrari cars, claims Volkswagen “unfairly” ended its contract.

Indian courts have “upheld Porsche’s termination of the importer agreement,” the Stuttgart-based unit said today in a statement. “The filing of criminal proceedings is an afterthought and just an attempt by the former importer to open a new -- and in the view of Porsche’s local lawyers inherently frivolous -- proceeding.”

Porsche is taking steps to have the warrants, which are a form of summons to answer allegations before the court, dismissed, the company said.

Precision, which has sold over 1,000 Porsche cars since becoming a dealer eight years ago, is challenging the end of the contract after making investments to sell the vehicles in the South Asian country, Ashish Chordia, a Mumbai-based director at the company, said today by phone.

“We will pursue these cases under the due process of law,” he said. “It’s not a joke to get a warrant issued.”

To contact the reporters on this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net; Sam Nagarajan in New Delhi at samnagarajan@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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