Mizoram: 11 Arrested in Rs 150 Crore Scam

AIZAWL: At least 11 people were arrested In connection with  Rs 150 crore Scam of defrauding a private non-banking financial company in Mizoram, a top police officer said on Friday.

Mizoram DGP Anil Shukla said the scam, involving five local car dealers, operated over four years.

The fraud came to light on March 20 after Mahindra and Mahindra Financial Services Limited (MMFSL) filed a complaint at Aizawl police station against its Mizoram area business manager Jakir Hussain (41), a resident of Tezpur in Assam, accusing him of orchestrating fraudulent vehicle loan disbursements.

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Another case was registered on March 29 at the crime and economics offence police station here based on the complaint filed by the company, he said.

During investigation, it was found that Hussain and a few branch employees opened a fake bank account in the name of Mahindra Finance Limited at Khatla branch of Mizoram Rural Bank (MRB) in 2020 using forged documents to park the defrauded money, he said.

“So far, we have arrested 11 people, including the mastermind Jakir Hussain in connection with the financial fraud amounting to Rs 150 crore,” he added.

Hussain, the mastermind, sanctioned loans to fictitious customers, never delivering vehicles but selling them at discounted prices, the officer said.

The operation ensured timely EMI payments to avoid suspicion, while fraudulent files were shifted to an accomplice’s residence during audits.

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Additionally, 26 bank accounts, totaling Rs 2.5 crore, were frozen, with five suspects in police remand and the others in judicial custody.

Furthermore,15 cars valuing over 3 crores have been recovered from various locations on disclosure of the accused, and about 47 crores have been returned by car dealers directly to MMFSL.

It has also learned that the accused used the loopholes in the company oversight process, KYC verification process, auditing, tele-verification, and supervisory mechanisms to continue their activities over a long period of time.