Mizoram Police detained the mastermind behind Mahindra & Mahindra loan fraud scheme

The mastermind behind a massive fraud involving vehicle loans which amounts to almost Rs 150 crore, Jakir Hussain has been detained by the Mizoram Police. Hussain, the Area Manager for Mahindra & Mahindra Financial Services (MMFSL) in Mizoram, planned a scheme by sanctioning loans for over 2000 fictitious customers, creating a complex web of deceit that spanned several years.

This came to surface after a complaint was filed by MMFSL’s Circle Head, Ankit Bagree, seeking an investigation by the Mizoram Police. Their diligent efforts led to the formation of a Special Investigation Team (SIT), under the supervision of senior officials, which ultimately cracked down on the fraudulent activities. Eleven individuals, including Hussain, have been arrested in connection with the fraud.

By creating ghost accounts to receive and make payments, Jakir Hussain exploited the financial systems. The accounts were maintained in order to avoid detection, ensuring that the fake loans did not turn into non-performing assets (NPAs). Many car dealers in Aizawl including CK Motors Hyundai and Rafael Nissan were a part of this scheme.

The police operation led to the recovery of significant assets including 15 high-end cars, and the freezing of 26 bank accounts holding about Rs 2.5 crores. Investigations revealed the involvement of car dealerships, which had funneled about Rs 3.47 crores back to MMFSL, possibly as part of a damage control effort. The involvement of trusted car dealerships has left many customers questioning the integrity of their financial transactions, and the police are working closely with MMFSL to tighten oversight mechanisms.