Rs 150 crore fraud in Mahindra Finance

A special investigation team (SIT) of Mizoram Police busted a major financial fraud in Mahindra & Mahindra Financial Services Ltd. (MMFSL) in Aizawl and have arrested 11 people in this connection, state DGP Anil Shukla revealed on Friday. Talking to media persons Shukla said that mastermind of the fraud Jakir Hussain (Area Manager, MMFSL) along with his associates orchestrated a fraud amounting to approximately Rs 150 crore.“Hussain sanctioned vehicle loans by creating fake files for over 2000 ghost customers,” he said. A total of 26 bank accounts amounting to about Rs. 2.5 crores have been frozen while bank accounts of car dealers amounting to about Rs. 1 crore have been frozen and aroundRs. 3.47 crore have been returned by car dealers directly to MMFSL. He said that 15 brand amount cars have been recovered from various locations following disclosures by the accused, valuing over Rs. 3 crore.  The SIT constituted for the investigation has recovered 3 laptops, 10 mobile phones, 549 ghost customer files, 25 forged seals, more than 30 SIM cards, 2 personal diaries, several identity documents, and other incriminating materials, he said.

“Car dealers in Aizawl like CK Motors Hyundai, NBE Tata, Rafael Nissan, Aidu Motors Renault and Standard Motors – three-wheelers are also found to be involved in the fraud,” the DGP said. He said that criminal cases under sections 408/467/468/34 IPC, was registered at PS Aizawl on March 20 last based on a complaint from Mr. Ankit Bagree, Circle Head of MMFSL. MMFSL primarily engages in the disbursement of vehicle loans. The complaint alleges financial fraud perpetrated by their Area Business Manager in Mizoram, Mr. Jakir Hussain (41), residing at Tuikhuahtlang in Aizawl, permanent resident of Tejpur in Assam, he said. “Subsequently, on March 29, another case, FIR No. 03/2024 under sections 408/419/466/467/472/471/477A/120B/34 IPC, was registered at the Police Station, Crime & Economic Offense on the complaint of Mr. Chanpreet Singh, Business Head at MMFSL,” he said.

 It was discovered that Mr. Jakir Hussain, along with a few branch employees, conspired in committing the fraud. Further interrogation revealed that the accused, in collusion with his associates, opened a fake bank account that closely resembled the name “Mahindra.” This account was opened in 2020 under the name “Mahindra Finance Limited” at the Khatla Branch of Mizoram Rural Bank (MRB). Mr. Jakir Hussain, with the assistance of individuals named Edenthara and Lalthankima, impersonated the Country Business Head and submitted forged documents. This bank account has been used to hold the money defrauded for over three years. Mastermind Hussain was arrested on March 29 after his rented house was raided by the SIT and his two accomplices – Edenthara (business executive) and H. Lalthankima (office staff) of MMFSL were arrested on April 2.  Jakir had reined in ManojSunar for helping him in his fraudulent operations and used to pay him Rs. 15,000 per month. Jakir also used to prepare forged stamps for documentation purpose.

At the time of company audit, Jakir used to remove these fake files from office and were transported to the house of Sunar. Searches were made at the house of Sunar and total 7 sacks containing 549 files for years 2022, 2023 and 2024 as well as 25 forged stamps were recovered. Accordingly, accused Sunar was also arrested on April 3. Of the total 11 accused arrested 5 of them have already been remanded to judicial custody and sent them to jail while 6 accused persons, including Jakir Hussain, are remanded to judicial custody for further interrogation. EOM