Mizoram police have arrested 15 individuals in connection with a massive Rs150 crore financial scam involving Mahindra and Mahindra Financial Services Limited (MMFSL) in Aizawl. The scam, which was uncovered after an investigation based on complaints from MMFSL, has shocked the region due to the scale and sophistication of the operation.
On Thursday, three car dealers—George S. Thoite of Rafael Nissan, Madhurjya Sharma of Aidu Motors (Renault), and Paul Zothanpuia of National Business Enterprise (TATA)—were arrested for their involvement in the fraudulent scheme.
The fraud was exposed after MMFSL filed complaints on March 20 and March 29, 2024, prompting an investigation by the Special Investigation Team (SIT). Between March 29 and April 3, the SIT arrested 11 individuals, including Jakir Hussain (40), the alleged mastermind behind the scam. The fraudsters had been operating the scam since 2020.
The accused created fake bank accounts under the name of Mahindra and sanctioned loans for 2,000 non-existent or ghost customers, who were later revealed to be fictitious. They forged documents to make the loans appear legitimate. The scam not only involved fabricated customers but also fake vehicle deliveries, as the cars promised to these customers were never delivered.
Instead, the vehicles were sold off to other individuals at discounted rates, pocketing the proceeds. Payments from five car dealers were routed through a fraudulent bank account opened at the Khatla branch of Mizoram Rural Bank.
Additionally, the police have frozen 26 bank accounts, which containedRs2.5 crore, as well as bank accounts of the car dealers involved, which hold an additional Rs1 crore.
The accused have been booked under various sections of the Indian Penal Code (IPC) for cheating, forgery, criminal conspiracy, and other related offenses. The Mizoram police continue to investigate the case to identify further individuals involved and to trace the full extent of the financial fraud.