Organised Car Fraud Racket Exposed In Vehicle Lease Scam

Bhopal (Madhya Pradesh): A growing number of vehicle fraud cases have exposed an organised racket in which cars taken on lease or rent from owners are allegedly sold or mortgaged using forged documents.

In one such case, Raghav Upadhyay, a resident of MP Nagar, agreed with a second-hand car dealer and paid an advance of Rs 5 lakh for an SUV.

However, the dealer, identified as Farhan Anees, neither delivered the vehicle nor returned the money.

The fraud came to light when the SUV's original owner informed Upadhyay that the vehicle had only been leased out and was never meant to be sold. Following the revelation, Upadhyay lodged a complaint at MP Nagar police station.

The case comes close on the heels of a breakthrough by Arera Hills police, who recently arrested an accused, Shailendra Joshi, and recovered around 35 vehicles.

Investigators alleged that Joshi had obtained the cars on lease or rent from their owners and subsequently mortgaged or sold them using forged documents.

A similar incident was reported in Awadhpuri, where a vehicle belonging to Sadhna Gupta was allegedly rented by a dealer, Deepanshu Das, and later sold without the owner's knowledge.

More than 12 such cases have been registered across different police stations since January this year, indicating that the crime has evolved into a well-organised racket. Investigations suggest that multiple rackets may be operating in the city.

In several cases, victims alleged that despite filing complaints, little action was taken.

In the Arera Hills case, for instance, the accused allegedly sold or mortgaged nearly 35 vehicles while victims approached different police stations seeking help.

The racket was eventually busted after Arera Hills police registered a case based on a complaint by victim Gaurav Kushwaha and conducted a detailed investigation.

How they operate

Police officials said preliminary investigations revealed that the gangs primarily targeted owners of new and high-end vehicles.

The accused allegedly lure vehicle owners by offering unusually high monthly rental payments, often exceeding Rs 25,000.

To attract victims, the operators use pamphlets, posters, direct marketing and social media campaigns. Many of them reportedly establish professional-looking offices to gain credibility, although most function without proper registration or licences.

Authorities said the fraudsters then target buyers in remote and rural areas through agents and social media networks to avoid detection.

Claiming urgent financial needs, they allegedly sell luxury vehicles at throwaway prices or mortgage them using forged documents and agreements.

Police officials said investigations into all such cases are underway and efforts are being made to identify other members of the network involved in the fraud.