The Mizoram Police have cracked one of the biggest financial scams in the Northeast, involving Mahindra & Mahindra Financial Services Ltd. (MMFSL). A press release from the police detailed the arrest and charge-sheeting of 20 individuals, including key accused Jakir Habibur Hussain, the Area Manager of MMFSL in Aizawl. Hussain, along with his associates and several car dealers, orchestrated a fraud amounting to approximately Rs. 150 crores, affecting MMFSL operations across Northeast India. The police have filed two charge sheets, comprising nearly 300 pages, in the court of Chief Judicial Magistrate, Aizawl, detailing the roles of the accused in cheating and forgery.
During the investigation, the police uncovered 177 bank accounts, seizing Rs. 5 crores, and recovered 15 vehicles worth Rs. 10.5 crores. Additionally, they confiscated 2035 ghost loan files, forged stamps, laptops, mobile phones, SIM cards, identity documents, and other incriminating materials. The scam involved the creation of fake bank accounts, including one under the name Mahindra Finance Limited, to process fraudulent vehicle loans. FIRs were registered following complaints from MMFSL officials, revealing the involvement of employees and car dealership owners in the elaborate scheme.
The modus operandi included maintaining regular EMI payments for fake accounts to avoid detection, using personal employees to handle fraudulent documentation, and exploiting loopholes in the company’s oversight and KYC processes. Searches at the homes of the accused led to the recovery of numerous fake files and stamps. Key accused Jakir Hussain and his associates utilized various tactics, including collaboration with car dealers CK Motors Hyundai, NBE Tata, Rafael Nissan, and Aidu Motors Renault, to facilitate the fraud. The investigation continues, with further arrests and seizures expected as more complaints are likely to surface from individuals whose documents were misused.
