By Sun Staff

Thu, May 1, 2008 (2 a.m.)

Dr. Dipak Desai’s recent attempt to ship his two Mercedes-Benz cars to Dubai was not successful because a Las Vegas Mercedes-Benz dealership refused to sign off on the arrangement.

Fletcher Jones Imports said the Las Vegas Sun was correct in reporting Wednesday that Desai made an effort to purchase two luxury cars he had been leasing from the dealership. But the Sun was incorrect in reporting that Desai succeeded in the effort. The Sun reported that Desai had paid off the vehicles, which combined were worth $247,000, and was shipping them through Texas to Dubai.

But Bernard Schiappa, general manager of Fletcher Jones, said the dealership refused to accept Desai’s payment because it would have violated the dealer’s agreement with Mercedes-Benz governing transactions involving foreign countries where other Mercedes-Benz franchises do business.

Under the agreement, the dealership has to pay Mercedes-Benz if a car less than two years old is shipped to the sales territory of a franchise in another country. Fletcher Jones would have faced penalties of up to $15,000 for each vehicle if they were shipped to Dubai, Schiappa said.

After being refused by Fletcher Jones, Desai tried to pay Mercedes-Benz Financial, the company that holds the notes on the cars, but was unsuccessful, Schiappa said. The check was returned because leased vehicles must be paid off through a Mercedes-Benz dealer, Schiappa said.

Schiappa said he put a notice on Desai’s account with Mercedes-Benz Financial to prevent Desai from paying off the loans through other dealers.

“I want people to understand that we don’t do uncouth things. We pay attention to what happens in town,” Schiappa said, adding that he was very aware of the controversies surrounding Desai.

Schiappa speculated that a person would not want to buy vehicles such as Desai’s in Dubai because they would cost up to three times as much.

Desai’s attorney did not return calls Tuesday and Wednesday for comment.