The CEO of the Iranian car company Azimkhodro (Great Car) and another suspect are detained for failing to deliver 4,000 pre-sold automobiles, Tehran's Prosecutor-General has disclosed.
He did not name the CEO but the website of the company names him as Reza Azimi.
Complainants are claiming more than $16.5 million compensation, while the total assets of the suspects amount to only $4.75 million, the government's official news agency (IRNA) cited Abbas Jafari Dolatabadi as saying on Saturday, November 24.
Azimkhodro recently offered to pre-sell foreign-made cars; Foton Savanah and Hangteng.
However, car analysts immediately described the price offers as "stunning" and too good to be true.
According to the official website of Azimkhodro, the company was established in 2002, authorized by the Ministry of Industry to pre-sell cars.
While the company was authorized to pre-sell 150 vehicles, it has pre-sold 4,000, Jafari Dolatabadi maintained, adding that there are seventeen lawsuits with 85,00 complainants against Azimkhodro.
Furthermore, another Iranian car importer company, Meftah Rahnavard, with 1,400 complainants is also under investigation.