A high-stakes police operation in Delhi has unraveled a vehicle loan fraud racket, leading to three arrests and the recovery of five premium vehicles. This development comes amid rising concerns over financial crimes in the competitive auto financing landscape.
The syndicate employed cunning tactics, including forged income proofs and manipulated credit scores, to secure loans from unsuspecting banks. Buyers were lured with zero-down-payment offers, but the gang pocketed the disbursed amounts and abandoned the financed cars after a few installments. The ploy netted them substantial profits until vigilant cops closed in.
Crime Branch sleuths, tipped off by a whistleblower from the banking sector, monitored the gang’s movements for weeks. Simultaneous raids across Rohini and Najafgarh yielded the arrests and a treasure trove of evidence: cash stacks, forged cheques, and the five vehicles – two Mercedes, a BMW, and SUVs – all registered fraudulently.
Preliminary probes indicate the fraud spanned multiple lenders, with losses mounting to ₹60 crore. ‘We have identified 150-odd victims and are reaching out for statements,’ an official said. The mastermind, a former bank employee, orchestrated the scams using insider knowledge.
This case spotlights vulnerabilities in loan processing amid India’s auto boom, where sales hit record highs last fiscal. Regulators may now push for enhanced tech safeguards like AI-driven fraud detection. With more raids planned, Delhi Police aim to eradicate such gangs, restoring faith in legitimate financing channels.