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Cars 4 U Auto Sales, Ltd.
Issues:Cars 4 U Auto Sales, Ltd. (“Cars 4 U”) applied to be registered as a motor dealer.
Cars 4 U’s principals, Satnam Singh Sanghera and Mohinder Singh Khaira, have ties to the defunct motor dealer, GN Motors, and its principals, Jojinder Singh Khaira and Raane Khaira.
Cars 4 U proposes to do business at the same location at which GN Motors operated.
Several claims have been payed by the Consumer Compensation Fund, due to the conduct of GN Motors
The Authority alleged that Cars 4 U was an attempt have GN Motors re-registered as a motor dealer, but with a different name.
The Registrar found that:
• Satnam Singh Sanghera was part of the day-to-day operations of GN Motors. He had also invested $100,000 with GN Motors indicating more
than an employment relationship. Satnam Singh Sanghera is an owner of Cars 4 U and will be responsible for the day-to-day operations of Cars 4 U;
• Cars 4 U will be physically located at the same address as once was GN Motors;
• Cars 4 U is using the same accountant as GN Motors;
• Mohinder Singh Khaira is the brother of Joginder Singh Khaira;
• Satnam Singh Sanghera is the cousin of Mohinder Singh Khaira and of Joginder Singh Khaira, the former owner of GN Motors;
• Mohinder Singh Khaira has no experience running a dealership;
• Mohinder Singh Khaira’s full-time work as a vice-principal and his side business building homes means he will have limited time to devote to the dealership;
• Cars 4 U was incorporated about three to four months after Joginder Singh Khaira says GN Motors stopped operating;
• The incorporation application for Cars 4 U was paid for using the credit card of a former declared owner of GN Motors and the wife of Joginder Singh Khaira, who was also a former owner of GN Motors;
• The formal records address for Cars 4 U is the home of Mohinder Singh Khaira, where his brother Joginder Singh Khaira also resides;
• Joginder Singh Khaira has admitted to acting on behalf of Cars 4 U in collecting rent cheques and attempting to evict tenants; and
• Cars 4 U has made a financial donation on behalf of and in the name of Joginder Singh Khaira.
The Registrar further found that:
• Cars 4 U and Joginder Singh Khaira have a greater connection then had been admitted;
• Cars 4 U is really GN Motors and Joginder Singh Khaira trying to register as a motor dealer under a different corporate name and with at least one nominee owner, Mohinder Singh Khaira, to escape scrutiny and any liability of GN Motors;
• Registering Cars 4 U as a motor dealer would expose consumers to an unacceptable risk of harm if Cars 4 U should misconduct itself in the manner that GN Motors did; and
• It would not be in the public interest to register Cars 4 U as a motor dealer.
The Registrar denied Cars 4 U’s application for registration as a motor dealer.
