Transport vehicle loan racket busted in Mysuru

Fifteen persons have been arrested by the Mysuru city police for duping private finance companies by obtaining loans against trucks and other goods transport vehicles after creating fake documents.

The Devaraja police had taken up the investigation after receiving a complaint from the Area Manager of Cholamandalam Finance in Mysuru last year that the accused had obtained a cumulative loan of ₹1.35 crore for purchase of 10 transport vehicles during 2019 and 2020, but had failed to pay their monthly instalments.

During police investigation, it came to light that the accused had created fake registration certificates (RC) of the transport vehicles as though they had been registered in different Transport offices of neighbouring Andhra Pradesh. Next, they would create documents for transfer of the non-existent vehicles to Karnataka and submit the same to different RTOs in the State.

The accused would provide a fake local address while making an application for registration and re-registration of the non-existent transport vehicles. Without physically producing the transport vehicles for inspection by the officials, the accused had managed to secure the transfer of the non-existent vehicles and obtain genuine RC cards, the police said in a statement here.

“The accused had confessed during interrogation to have created about 200 such RC cards during 2019 and 2020”, the police statement claimed.

The City police had not only seized documents of different RTOs in Karnataka from where the RC cards had been obtained through fraudulent means, but is also probing the creation of RC cards obtained from the Transport offices in Andhra Pradesh.

The police statement also said the accused had obtained loans through such fraudulent means from private finance companies other than Cholamandalam Finance also.

In the complaint, the private finance company alleged that the accused, who had defrauded the company by defaulting on the repayment of the loan, were also selling the trucks by changing their engine and chassis number.

Apart from arresting 15 persons, the police have seized 7 trucks, 2 cars, one motorcycle, two laptops and other documents.

The arrested have been identified as Periyaswamy, Manju, Ganesh, Mahesh, William Rajkumar, Madeshan, Sathyavelu, Ajit, Antony, Anand Kumar, Prakash, Ashok Kumar, Manohar, Gurupadaswamy and Shanthakumar.

Police said a hunt is underway to track down a few more accused involved in the racket.

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Printable version | Sep 21, 2021 8:31:18 PM | https://www.thehindu.com/news/national/karnataka/transport-vehicle-loan-racket-busted-in-mysuru/article35119767.ece

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