An email sent to Kapil Shelke, Founder & CEO, Tork Motors, went unanswered.
When contacted by ETAuto, Kiran Pathare, Assistant Police Inspector, Pimpri-Chinchwad said, the investigation is in process and the details are confidential. “Action should be taken by next week,” he said.
Additionally, Tork sent a ‘Notice of Role Dissolution and Employment Termination’ to its employees, a copy of which has been seen by ETAuto.
“After careful evaluation of our current organizational structure and future plans, we have determined that certain roles within the company will be dissolved,” the email from the company said.
Effective July 31, 2024, Tork has officially asked for employee termination. This decision, it said, “was not made lightly and is necessary to align our workforce with our strategic goals”.
While the company has not paid salaries for the last seven months, it noted that the employees will receive a relieving letter “in due time”.
Last month, ETAuto reported about Tork Motors’ funding woes.
Founded in 2010, Tork Motors manufactures electric motorcycles. It is also a powertrain manufacturer for two- and three-wheelers. Kalyani Powertrain Limited, a wholly owned subsidiary of Bharat Forge, holds 64.29% equity shares of Tork Motors.
Addressing the concern in a recent media interview, Amit Kalyani, Vice Chairman & Joint Managing Director, Bharat Forge said, “We are an investor in a company called Tork Motors. It was founded by a bright, young man from Pune and we invested in this company over the last 4-5 years in multiple tranches. Then, with the withdrawal and reduction in the FAME scheme, the profitability of the company reduced, and I think it is prudent for us to take a provision because we are an investor."
"If the company is in a situation where we have growing concerns about its ability, we have to recognise that and ride out. We don’t run the company, it is run by its CEO, Managing Directors and KMPs (Key Management Personnel)," he said.
When asked if Bharat Forge is considering investing more in Tork Motors in the upcoming quarters, Kalyani said, “No, we have written off all our investment in this company so far. We are working with them to see how we do an orderly wind up. But as far as our investment is concerned, this is the large part of it.”
The move is also a pain point for the customers who have bought the Tork motorcycles. Most of them are happy with the product but concerns about warranty and service are now arising.
For instance, one of the customers that ETAuto talked to bought Tork Kratos R last October and said he is unable to connect his charger. While the vehicle and its parts came with a warranty of three years, the customer is not sure where to get the service as its dealerships will be shut.
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