Even if the customer agrees to cover their arrears installments and fines paid to the seizing officers, the vehicle is not returned to the owner, reports say.
When such a situation arises, officials of Arpico Finance will inform the vehicle owner to pay the full amount and take back the vehicle but the full amount noted will usually exceed the market price of the vehicle.
The latest of such incidents is reported from its head office.
The incident involves a vehicle seized by Arpico Finance around Feb. 10, from a garage in Madiwela area.
2.5 million interest for 03 million
The relevant vehicle was purchased by K.M. Rajakaruna, a resident of No. 38/6 / A, Mahindarama Road, Ethul Kotte, Kotte, under a leasing facility from Arpico Finance.
He had purchased a Wagon R - 2018 for Rs. 3,250,000 /- and had obtained a leasing facility of Rs. 3,000,000 /- from Arpico Finance.
After obtaining the leasing facility, he has paid back nearly Rs. 1,300,0000 /- of the leased money during a period of 2 years.
However, Arpico Finance has stated in writing that the owner has to pay Rs. 4,230,071 /- in order to obtain the car after it was seized. That is their assessment as of February 17th.
(The relevant document is below.)
Even now, the maximum market price of a 2018 Wagon R car does not exceed Rs. 3.7 million, according to market sources.
According to Arpico Finance's calculations, the customer is compelled to pay Rs. 2.5 million as interest for the nearly 02-year lease period, in order to get his car back.
Also, it is said that vehicles seized by Arpico Finance are very rarely auctioned.
Even though the basic requirement of the company is to get back the money invested by them without any loss, higher officials are accused of securing intermediary benefits by stating the marked up prices.
It is said that seizing officials are paid Rs. 50,000 / - to seize a car.
The following is a telephone conversation between the aforesaid customer and a senior official of Arpico Finance.