Several factors led to the discontinuation of the DC Avanti. One major reason was the lack of basic safety features — the car didn’t even come with airbags, making it non-compliant with updated automotive safety regulations.

Another critical factor was the alleged scam involving company founder Dilip Chhabria. He was arrested by Mumbai Police in December 2020 in connection with multiple fraud cases. Investigations revealed that several DC Avanti units were sold with identical engine and chassis numbers, likely to evade taxes.

Chhabria was also accused of purchasing his own vehicles under different names and securing loans through Non-Banking Financial Companies (NBFCs). These cars were then resold to customers. Reports suggest this scheme resulted in a loss of approximately ₹40 crores to the government exchequer.

Initially overlooked due to Chhabria’s strong reputation in the auto design industry, the scam came to light when police found multiple Avanti models with the same registration identifiers.