The Unraveling the Saga
The Unraveling-In the heart of Mizoram, a clandestine network orchestrated what authorities have labeled as “the biggest auto-finance scam of northeast India.” A concoction of a fake ‘Mahindra’ account, over 2,000 ghost customers, and a staggering fraud amounting to ₹150 crore unraveled over nearly four years before the Mizoram Police intervened, leading to the arrest of 11 individuals, including the alleged mastermind.
The Unraveling-The intricate web of deceit revolved around the accused fabricating car loans for more than 2,000 ghost customers, exploiting vulnerabilities within the oversight processes of Mahindra & Mahindra Financial Services Limited (MMFSL). These illicit activities, ranging from 2020 to 2024, involved circumventing KYC verification processes, tele-verification, and supervisory mechanisms crucial for MMFSL’s operations in disbursing vehicle loans.
The Unraveling-The scheme surfaced when Ankit Bagree, the Circle Head of MMFSL, raised alarm bells on March 20, unveiling a financial malfeasance amounting to ₹150 crore attributed to the then area business manager at the Mizoram branch. Subsequently, another case emerged on March 29, shedding light on the magnitude of the scam.
The Unraveling-The Modus Operandi
The Unraveling-At the core of the operation stood Mr. Hussain, the alleged mastermind, who, in collaboration with accomplices, established a fake bank account in 2020 under the guise of “Mahindra Finance Limited,” mirroring the authentic brand identity. This account served as a repository for the embezzled funds over the course of three years.
The Unraveling-Mr. Hussain’s collaborators, Edenthara and Lalthankima, assuming the roles of high-ranking officials, falsified documents to perpetuate the charade. The duo impersonated the country business head, submitting forged credentials to support their deception.
The Unraveling-The arrest of the mastermind ensued on March 29 following a raid by the Crime Investigation Department (CID) at his residence, leading to the seizure of incriminating evidence, including a laptop and multiple mobile phones.
The Unraveling-Fabricated Stamps, Seals, and Documents
Edenthara and Lalthankima, apprehended on April 2, divulged during interrogation the extent of Mr. Hussain’s machinations. He orchestrated the creation of counterfeit documents, leveraging falsified office designations to establish the fake bank account under the banner of Mahindra Finance Limited. Fabricated stamps, seals, and documents served as the linchpin of the ruse, facilitating transactions with car dealers.
Mr. Hussain orchestrated the removal of these fraudulent files from the office premises, entrusting them to his associate, Manoj Sunar. In exchange for his complicity, Mr. Sunar received a monthly remuneration of ₹15,000. Subsequent searches at Mr. Sunar’s residence yielded seven sacks containing files spanning from 2022 to 2024, alongside forged stamps, culminating in his arrest on April 3.
Management of Ghost Accounts
To obfuscate detection and prevent ghost accounts from metamorphosing into non-performing assets (NPAs), Mr. Hussain and his cohorts orchestrated EMI payments for these fictitious accounts. Funds were siphoned from the counterfeit ‘Mahindra’ account, ensuring a facade of financial regularity.
Recoveries and Restitutions
In the wake of the crackdown, authorities froze 26 ghost bank accounts, amounting to nearly ₹2.5 crores, alongside freezing car dealers’ accounts valued at ₹1 crore. Additionally, the recovery of 15 cars, valued at ₹3 crore, symbolizes a partial reclamation of the ill-gotten gains.
Moreover, car dealers have proactively returned approximately ₹3.47 crores directly to MMFSL, signaling a collaborative effort in mitigating the ramifications of the scam.
Conclusion
The unraveling of the ₹150 crore auto-finance scam underscores the imperative of robust oversight mechanisms and heightened vigilance within financial institutions. The symbiotic relationship between law enforcement agencies and corporate entities exemplifies a concerted endeavor to uphold the integrity of financial systems and safeguard against nefarious activities. As the perpetrators face legal repercussions, the Mizoram case serves as a poignant reminder of the resilience required to combat financial fraud and uphold the principles of transparency and accountability.
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