2000 ghost customers, a fake bank account: ₹150 cr vehicle load fraud in Mizoram
Guwahati, Apr 27, 2024
The complaint alleged financial fraud by MMFSL area business manager in Mizoram, Jakir Hussain, during the disbursement of vehicle loans
The Mizoram Police have arrested 11 people for their alleged roles in a scam amounting to nearly Rs.150 crore by sanctioning vehicle loans to over 2000 ‘ghost’ (non-existent) customers.
Addressing a press conference in Aizawl on Friday, director general of police (DGP) Anil Shukla gave details of the case, which is believed to be the biggest auto-finance scam in the northeast. Five car dealers are also said to have been involved in the conspiracy and embezzlement.
Shukla said that the accused opened a fake bank account of Mahindra and Mahindra Financial Services Limited (MMFSL), which is primarily involved in the disbursement of vehicle loans, to commit the crime over four years.
Police started investigations last month after a case under sections 408, 467, 468, and 34 of the Indian Penal Code (IPC), was registered at Aizawl based on a complaint from one Ankit Bagree, circle head of MMFSL.
The complaint alleged financial fraud by MMFSL area business manager in Mizoram, Jakir Hussain, during the disbursement of vehicle loans. Subsequently, on March 29 another case under sections 408, 419, 466, 467, 472, 471, 477A, 120B and 34 of the IPC, was registered at the crime and economic offense wing of Mizoram Police on the complaint of Chanpreet Singh, business head at MMFSL.
“During the investigation, it was discovered that Hussain, along with a few branch employees, conspired in committing the fraud. They opened a fake bank account that closely resembled the name “Mahindra,” DGP Shukla stated.
This account was established in 2020 under Mahindra Finance Limited at the Khatla Branch of Mizoram Rural Bank (MRB). Hussain, with the assistance of individuals identified as Edenthara and Lalthankima, impersonated the country business head of MMFSL and submitted forged documents. This bank account was used to hold the money defrauded for over three years.
On March 29, police arrested mastermind Husain and seized one personal laptop and several mobile phones. On April 2, Lalthankima (office staff) and Edenthara (business executive) were arrested after sustained interrogation.
During the investigation, they revealed that Hussain prepared fake documents and misrepresented their office designations, presenting themselves as senior company officials, to open a bank account in the name of Mahindra Finance Limited. Fake stamps, seals, and documents were created to open the account.
The account was established to receive payments from car dealers, Rafael Nissan, AIDU Motors, National Business Executive, CK Cars, and Standard Motors.
According to the police, Hussain and his associates used to regularly make EMI payments for fake accounts by withdrawing money from the fake bank account to ensure that ghost loan accounts didn’t turn NPA (nonperforming asset) and to avoid any suspicions.
Hussain had employed a man identified as Manoj Sunar to help him in his alleged fraudulent operations and used to pay him Rs.15,000 per month, said police. Jakir also used to prepare forged stamps for documentation purposes.
At the time of the audit, Hussain used to remove these fake files from the office and transported them to Sunar’s residence. Searches were made at the residence of Sunar during which seven sacks containing 549 files for the years 2022, 2023 and 2024 and 25 forged stamps were recovered. Sunar was arrested on April 3.
“The accused used the loopholes in the company oversight process, KYC verification process, auditing, tele-verification and well as supervisory mechanism to continue their activities over a long period of time,” said DGP Shukla.
According to police 26 bank accounts amounting to Rs.2.5 crore have been frozen, bank accounts of car dealers amounting to about Rs.1 crore have been frozen, about Rs.3.47 crore have been returned by car dealers directly to MMFSL and 15 cars valued at over Rs.3 crore have been recovered.
Other recoveries include three laptops, 10 mobile phones, 549 ghost customers’ files, 25 forged seals, 30 SIM cards, two personal diaries and various other documents.
[The Hindustan Times]
