A UK and European electrical vehicles partnership company, which is owned by Indian-Canadian businessman Ram Tumuluri, is scrambling to collect funds of around $8 billion to materialise a Rs2,800-crore electric buses deal with Mumbai.
The Indian govt sources made the revelations while talking to a US publication, the American Daily Post. It reported that Tumuluri’s England & Wales registered Causis Group Ltd won in October 2021 a tender to supply 1,400 electric vehicles to The Brihanmumbai Electric Supply and Transport (BEST).
Despite lapse of two years, the company wrestles with shortage of fund, putting the deal under threat, the sources told the media outlet.
UK-based Causis is wholly owned by Tumuluri. Its operating entity is India-registered Causis E-Mobility Pvt Ltd. While on paper it is owned by its directors Marudur Subramanyam Chandrasekar and Ravi Kumar Panga, Causis E-Mobility is in reality controlled by Tumuluri, said the Post.
An Indian government source told The American Daily website: “Causis is using the Memorandum of Understanding (MoU) with Maharashtra Government as a security but banks are demanding sovereign guarantee from the state government, which has not been approved by the government. Causis is struggling to arrange debt and their efforts are ongoing but it is evident Causis has so far failed to find any credible lenders. On paper, there are lots of promises but there is zero delivery so far.”
A source at Causis E-Mobility Pvt Ltd also told media that Ram Tumuluri has personally invested in his new Electrical Vehicles (EV) venture Causis and is looking to raise funds but so far his efforts have proven fruitless.
The situation has sparked fears that Tumuluri may defraud his investors and business partners as Causis lacks manufacturing or technical capabilities and his German partner, an alleged KGB / FSB agent has no track record in electrical vehicles.
Ram Tumuluri lives often in UK’s Sunningdale area in Ascot in a six-bedroom detached house purchased by his wife Sonya Sarah Tumuluri on 25 February 2021 for £2,550,000 with a mortgage with West One Loan Limited, said the paper.
On the other hand, Causis executives told Indian news outlet The Economic Times that the company eyes an investment of $ 6-8 billion in India with 30% of it coming from equity funding and the rest through debt financing locally.
They also said the company has already invested around Rs 300 crore in India for the acquisition of a bus body manufacturer in Jaipur and a 75-acre plot near Pune for its second plant.
Causis is using the MoU with Maharashtra Government as a security, but banks are demanding sovereign guarantee from the state government, which has not been approved by the government. This is the biggest obstacle Causis is facing, according to the government insiders, the American Daily Post reported.
According to an article by Indian news outlet The Indian Express, Causis won a tender for supplying The Brihanmumbai Electric Supply and Transport (BEST) with 1,400 electric buses. In October 2021, the Maharashtra state government, in the presence of environment minister Aaditya Thackeray and industry minister Subhash Desai, signed the contract for Rs 2,800 crore ($370,000).
Aaditya’s father is Maharashtra Chief Minister Uddhav Thackeray, who is also the Chief of Shiv Sena, a regional political party. Subhash Desai is described as “the Thackeray family loyalist” by the Indian press.
Maltese news outlet The Shift News reported Tumuluri’s Electrical Vehicles venture in an article titled “Ram Tumuluri suspected of replicating ‘fraudulent’ Malta VGH model in Mumbai” – a reference to a big health scare scandal in Malta.
Indian authorities have said they have contacted the company to seek progress report but they received no response in three months. The deal stands to be annulled if the funding proofs are not provided to the Indian authorities soon, the Post said.
