Mizoram police busts biggest scam worth Rs 150 crore, 11 individuals including mastermind arrested

During a press conference on Friday, Mizoram's DGP Anil Shukla announced that the Mizoram Police have arrested individuals connected to the largest scam in Mizoram and the entire Northeast region.

According to the DGP, the Mastermind Jakir Hussain (Area Manager of Mahindra & Mahindra Financial Services Ltd.),  along with his associates orchestrated a fraud amounting to approximately Rs 150 crore, and sanctioned vehicle loans by creating fake files for over 2000 ghost customers.

Jakir Hussain, (41) is a resident of Tezpur, Assam and is currently residing at T-127, KV Thangmawia Building, Tuikhuahtlang, Aizawl.

The Police have arrested 11 individuals and have frozen 26 bank accounts amounting to 2.5 crores. They have also seized 3 laptops, 10 mobile phones, 549 ghost customers’ files, 25 forged seals, 30+ SIM cards, 2 personal diaries and various other identity documents. Landed properties of main accused Jakir amounting to around Rs. 3 crores have been identified.

The investigation into the State’s biggest scam began when an FIR was lodged at Aizawl police Station on March 20, 2024 by Ankit Bagree, Circle Head of Mahindra & Mahindra Financial Services Ltd. (MMFSL) alleging financial fraud perpetrated by their Area Business Manager in Mizoram, Jakir Hussain, (41) during the disbursement of vehicle loans.

Subsequently, another complaint was lodged by Chanpreet Singh, Business Head at MMFSL on March 29, 2024 at PS Crime & Economic Offense. As per the instructions of the Director General of Police Mizoram, a Constitution of Special Investigation Team (SIT) under CID Crime, was immediately formed to take up the investigation.

On March 29, a raid was conducted at the residence of Jakir Hussain, and he was subsequently brought to the CID office for interrogation related to the case. After sustained interrogation, he was duly arrested. During the search of his house, one personal laptop and several mobile phones were seized. 

Upon further investigation, H. Lalthankima (office staff) and Edenthura (Business Executive) were arrested, and after sustained interrogation, they revealed that Jakir prepared fake documents and in collusion with them, had opened a bank account with forged documents in the name of Mahindra Finance Limited, at Khatla Branch of Mizoram Rural Bank in 2020 under impersonation as the Country Business Head.

On April 3, the SIT also arrested Manoj Sunar, a personal employee of Jakir Hussain, who was paid Rs. 15,000 a month to help Jakir prepare forged stamps for documentation purposes. Upon interrogation, Manoj revealed that at the time of the company audit, Jakir used to remove these fake files from the office and were transported to his house. Searches were made at the house of Manoj by SIT where a total of 7 sacks containing 549 files for years 2022, 2023 & 2024 and 25 forged stamps were recovered.

During the investigation, the Police also learnt that five car dealers have been involved in the conspiracy viz. CK Motors Hyundai; NBE Tata; Rafael Nissan; Aidu Motors Renault; Standard Motors - three-wheelers.

The SIT had also frozen 26 bank accounts amounting to 2.5 crores and an additional accounts of car dealers amounting to about Rs. 1 crore have been frozen. 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 was also learnt that the accused used the loopholes in the company oversight process, KYC verification process, auditing, tele-verification and as well as supervisory mechanism to continue their activities over a long period.

Jakir Hussain, the mastermind and main beneficiary of a massive fraud, has been arrested along with ten others. Among the arrested are Lalthankima and Edenthara, office staff and business executive respectively, who allegedly assisted in setting up fraudulent bank accounts and initiating fake loans. 

Manoj Sunar, a private employee, was reportedly on Jakir's payroll and aided in preparing counterfeit files. Jakir's private driver, Rintu, who had a car registered under his name, was also apprehended. Kajal Das, an employee of a Tata dealer, allegedly received INR 30,000 per counterfeit file. C. Lalawmpuia, a private individual, is accused of preparing forged files. 

Ex-employee and former Circle Head of Mahindra, Yogesh Sarda, is implicated in a large-scale embezzlement of funds. Lalrinunga Ralte and Lalchhandama, both employees of Mahindra Finance, allegedly acted as the main link between Jakir and dealers and facilitated embezzlement through their accounts. Praloy Das, Jakir's superior, is also accused of significant embezzlement.