Dilip Chhabria, owner DC Design
Car designer Dilip Chhabria's
firm is suspected to have cheated several finance companies
by obtaining loans fraudulently, the city police said on Tuesday.
The Crime Intelligence Unit (CIU) of the Mumbai crime branch arrested Chhabria on Monday evening.
The alleged scam came to light when the police seized a DC Avanti, a sports-car manufactured by Dilip Chhabria Design Pvt Ltd, in south Mumbai on a tip-off that its registration number was bogus.
The car's owner produced documents which were found to be genuine and showed that it was registered at Chennai. However, another car with same engine and chassis number was found to be registered in Haryana, police said in a release.
Probe revealed that loans averaging Rs 42 lakh per car were availed by Dilip Chhabria Design Pvt Ltd for DC Avantis manufactured by it in the name of bogus customers, it said.
As many as 120 DC Avanti cars have been sold in India and abroad, and at least 90 of them were allegedly used for obtaining loans fraudulently.
The cars were on paper hypothecated to the finance firm but were already sold off to customers, the investigators claimed.
Various Non-Banking Finance Companies including BMW Financial Services were duped in this way, police said.
The crime branch is now ascertaining the quantum of the loan fraud as well as the loss suffered by the government due to evasion of taxes, officials said.
Chhabria, known for selling cars with customised design, has been booked for cheating and forgery, among other charges.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.