A fake ‘Mahindra’ account, Over 2,000 ghost customers and a fraud amounting to Rs 150 crore – These elements constituted “the biggest auto-finance scam of northeast India”. The Mizoram Police has now busted the gang behind the scam running over for nearly four years and arrested 11 people including the alleged mastermind.
The accused sanctioned car loans by creating fake files for more than 2,000 ghost customers. They allegedly used the loopholes in the oversight process of Mahindra & Mahindra Financial Services Limited (MMFSL), KYC verification process auditing, tele-verification as well as a supervisory mechanism to continue their activities from 2020 to 2024, the police said. MMFSL primarily engages in the disbursement of vehicle loans.
The case came to light after On March 20, Ankit Bagree – the Circle Head of the MMFSL – alleged financial fraud amounting to Rs 150 crore by the then area business manager at the Mizoram branch. Another case was filed on March 29.
The Modus Operandi
Mr Hussain, the alleged mastermind, conspired with a few other colleagues and opened a fake bank account in 2020 under the “Mahindra Finance Limited” – that closely resembled the original brand name.
This bank account was used to hold the defrauded money for more than three years.
Two of Mr Hussain’s accomplices – Edenthara and Lalthankima – impersonated the country business head and submitted forged documents.
The mastermind in the case was arrested on March 29 after a raid was conducted at his home by the Crime Investigation Department or CID. A laptop and several mobile phones were seized during the raid.
Fake Stamps, Seals And Documents
Edenthara and Lalthankima were arrested on April 2 and revealed during interrogation that Mr 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. They created fake stamps, seals, and documents for the purpose. The fake account was created to receive payments from car dealers.
Mr Hussain used to remove these fake files from office and transport themo the house of his other aide Manoj Sunar. He used to pay Mr Sunar Rs 15,000 per month for his help in the fraudulent operations.
During searches at Mr Sunar’s house, seven sacks containing files from 2022 to 2024 and forged stamps were recovered. He was arrested on April 3.
How Accused Managed The Ghost Accounts
Mr Hussain and his associates used to make EMI payments for fake accounts by withdrawing money from the fake “Mahindra” account to avoid suspicion and ensure ghost accounts don’t turn into non-performing assets or NPA.
Recoveries
The police have frozen 26 ghost bank accounts amounting to nearly 2.5 crores. The accounts of car dealers – worth Rs 1 crore – have also been frozen. 15 cars worth Rs 3 crore have also been recovered.
Nearly Rs 3.47 crores have been returned by car dealers directly to the MMFSL.
Three laptops, 10 mobile phones, 549 ghost customers’ files, 25the forged seals, more than SIM cards, two personal diaries and various other identity documents have also been recovered.
