Iconic Business Magnate Aditya Vikram Birla failed in his Commitments: Raft Motors Founder Rakesh Salve Speaks Out

In a business landscape where trust and integrity are paramount, a shocking dispute has erupted between the founders of Raft Motors Pvt. Ltd. and Aditya Vikram Birla, a Kolkata-based businessman and CMD of the Cosmic Birla Group. The acquisition of Raft Motors by Cosmic Birla Group in November 2023, which was initially seen as a positive step towards growth and expansion, has now turned into a nightmare for the founders. One year later, the terms agreed upon at the time of the acquisition remain unfulfilled, and the founders are left grappling with a situation where their trust has been betrayed, their livelihoods threatened, and their reputation tarnished.

The Acquisition and the Terms Agreed

Raft Motors Pvt. Ltd., a promising electric vehicle company, entered into an acquisition agreement with Aditya Vikram Birla’s Cosmic Birla Group in November 2023. The agreed terms were clear: Birla’s group would acquire a 51% stake in Raft Motors. In return, they would clear the company’s outstanding liabilities, which amounted to approximately ₹5 crore. Additionally, Raft Motors would take a 10% stake in Cosmic EV Ltd., a company formed just three months prior to the acquisition.

Before the agreement was formalized, the entire book of accounts of Raft Motors were handed over to the Cosmic Birla Group for review. It was at this point that the first signs of trouble began to emerge. Rather than adhering to the agreed-upon terms, Mr. Aditya Vikram Birla began to pressure the founders to relinquish more of their equity, aiming to gain control of the entire company without making the payments promised.

The Dispute

What followed was a series of actions by Mr. Aditya Vikram Birla and his team that can only be described as a calculated attempt to strip the founders of Raft Motors of their stake and power in the company. Through a right issue, Mr. Birla managed to acquire a majority of the shares from the founders’ stake without paying a single rupee for their Equity. This was done under the guise of corporate restructuring, but it soon became evident that the intentions were far more sinister.

Not only did Birla fail to honor the financial commitments made during the acquisition, but he also stopped paying the salaries of the founders, making their personal and professional lives increasingly difficult. Founder Rakesh Salve, who had trusted Mr. Birla to steer Raft Motors towards success, found himself pressured to exit the company altogether. In exchange for his 10% equity, Birla offered a mere ₹48 lakh—a figure that grossly undervalued Salve’s stake in the company. 

Despite this, Salve refused to step down from Directorship, choosing instead to stand firm in his commitment to the company he had built from the ground up. Meanwhile, Parivesh Shukla, the second co-founder of Raft Motors, has also faced similar pressure to exit the company on Birla’s team. 

Salary Stopped, Reputation Tarnished

Adding to the list of grievances, Mr. Shukla revealed that his salary had been stopped as of April 1, 2024. He had been drawing a modest salary of ₹50,000 per month, just enough for survival, but even this was cut off in an attempt to force him out of the company. Mr. Shukla also stated that his dues have been pending for over a year, and Mr. Birla has refused to pay a single rupee unless Mr. Shukla agrees to exit the company.

Legal Action on the Horizon

After months of unfulfilled promises, financial strain, and harassment, the founders of Raft Motors have decided to take legal action against them. They plan to file an FIR against them, alleging financial fraud, breach of contract, and threats. The founders believe that this is the only way to regain control of their company and put an end to the year-long ordeal they have faced.

The Way Forward

The situation at Raft Motors serves as a stark reminder of the importance of transparency, fairness, and trust in business dealings. The founders of Raft Motors are determined to see justice served and to restore the company to its former glory. As they prepare for the legal battle ahead, they remain focused on their ultimate goal: to continue building Raft Motors into a leading player in the electric vehicle industry.

The dispute with Aditya Vikram Birla may have slowed their progress, but it has not extinguished their resolve. The founders of Raft Motors are prepared to fight for their company and their vision for the future.