The Mizoram Police have cracked down on a large-scale auto-finance scam that ran for nearly four years, arresting eleven individuals, including the alleged mastermind. The scam, estimated at a staggering Rs 150 crore, is being touted as the biggest auto-finance fraud ever unearthed in Northeast India.
At the heart of the elaborate scheme was Jakir Hussain, a former employee of Mahindra & Mahindra Financial Services Limited (MMFSL). Hussain, along with a network of accomplices, allegedly created a web of deceit involving fake loan applications, fictitious customers, and a cleverly disguised bank account.
Hussain, the prime suspect, is believed to have conspired with colleagues to establish a fraudulent bank account in 2020. This account, titled “Mahindra Finance Limited,” bore a striking resemblance to the legitimate company’s name, allowing them to divert stolen funds.
Two of Hussain’s alleged accomplices, Edenthara and Lalthankima, played a crucial role. Posing as high-ranking MMFSL officials, they forged documents to open the fake bank account. This account served as a repository for the embezzled money over a period of exceeding three years.
The investigation revealed that Hussain fabricated loan applications for over 2,000 non-existent borrowers – essentially, ghost customers. These fabricated applications were then approved, with loan proceeds channelled into the fake bank account.
The scam came to light in March 2024 when Ankit Bagree, the Circle Head of MMFSL, raised an alarm regarding suspected financial irregularities amounting to Rs 150 crore at the Mizoram branch. Following this initial complaint, a second case was filed later in March.
The Crime Investigation Department (CID) swiftly swung into action, conducting a raid on Hussain’s residence on March 29th. The raid yielded a laptop and several mobile phones, potentially containing incriminating evidence.
Further investigation exposed the intricate details of the scam. Edenthara and Lalthankima were apprehended on April 2nd and confessed during interrogation. They revealed Hussain’s role in creating fake documents and impersonating senior MMFSL officials to establish the fraudulent bank account. Forged stamps, seals, and documents were also revealed.
The investigation also unearthed the role of Manoj Sunar, another alleged accomplice. Hussan reportedly transferred fabricated loan files to Sunar’s residence, presumed to conceal them from scrutiny. Sunar received a monthly payment of Rs 15,000 for his involvement. A search of Sunar’s residence led to the recovery of seven sacks containing files from 2022 to 2024, along with forged stamps, leading to his arrest on April 3rd. To prevent suspicion and ensure the fabricated loans didn’t turn delinquent, they used funds from the fake “Mahindra” account to make fraudulent EMI payments on the ghost accounts, essentially laundering money to keep the scheme afloat
The Mizoram Police have made significant progress in recovering stolen funds and assets and have successfully tracked 26 bank accounts linked to ghost customers, containing nearly Rs 2.5 crore. Additionally, car dealer accounts worth Rs 1 crore have been immobilized. The police have also managed to recover 15 cars with an estimated value of Rs 3 crore. The police also seized three laptops, ten mobile phones, and files related to 549 fabricated loan accounts, 25 forged seals, numerous SIM cards, personal diaries, and various identity documents believed to be linked to the scam. Furthermore, car dealers have directly returned nearly Rs 3.47 crore to MMFSL.
