Car loan Fraud

When a Gomtinagar-based businessman bought a 2014 model Tata Safari Storme from a trusted acquaintance for almost half the price in August last year, he had no idea that trouble was in store for him. Having put off the process to transfer the ownership, which would have cost him just Rs 270, the businessman eventually realized that his prized SUV had been bought fraudulently.

He found that Indiranagar resident Shah Mohammad alias Raziullah had submitted forged documents before Chinhat SBI branch in March 2014 to secure an auto loan of Rs 12 lakh. The SUV was subsequently sold to the businessman. At present, sleuths from Hazratganj-based cyber cell are probing the role of the businessman before they give him the clean chit.

Since April last year, city police have received reports of at least 47 individuals who're suspected of procuring auto loans from financial institutions on fabricated documents and forged income tax returns. 14 people have been arrested in connection with such cases. On Monday, a group of four, including an MBA graduate, was arrested for duping Chinhat and Vikas Nagar branches of SBI to the tune of Rs 50 lakh and buying four SUVs on forged documents.

Besides Raziullah, the MBA graduate from Rajivnagar locality, LDA colony resident Indrapreet Singh and two Sitapur residents Guddu Singh and Anil Dikshit were arrested, the latter three being in the 24-35 age bracket. The group had sold three SUVs and the fourth one was recovered from them. Officer-in-charge of the cell inspector Bhagwan Singh said that role of staff members from the auto showroom which sold the SUVs was under the scanner in the latest case.

In the past one year, six FIRs in different parts of the city have been lodged at the behest of banks. With support of sales staff at showroom, direct selling agents or insiders at the bank, various gangs active in this field managed to bypass the necessary verification process. In some cases, they were also given forged no-objection certificate.

"Banks realize something is amiss only when defaults in EMI payments take place. In that much time, cons sell the SUVs to potential buyers and are again at work," said officer-in-charge of Bazarkhala police station inspector Vikas Pandey. During his stint at Krishnanagar police station in June last year, Pandey had busted a gang and recovered 10 luxury vehicles procured fraudulently. "Action was taken against the direct selling agent in that case," added Pandey.


CAR BUYING CHECKLIST

RTO Sagheer Ahmed Ansari offers some tips to second-hand car buyers

*To detect car loan fraud, both buyer and seller should approach RTO office ideally

* On being offered unbelievable deals, apply for transfer of ownership immediately even if seller offers no-objection certificate

* Submit form 29 and 30, relevant documents including photographs, tax clearance certificate, registration and insurance certificates etc

*Fee break-up for light motor vehicle:

transfer of ownership: Rs 100

Change of address: Rs 20

Alteration in registration book: Rs 50

Hire purchase entry fee: Rs 100

Total: Rs 270