DC Avanti car scam: company took out a loan as a customer for its own vehicles
A day after leading Indian car designer Dilip Chhabria was arrested, Mumbai police claimed on Tuesday that they had dismantled a major DC Avanti car scam involving financing and false registration.
The 66-year-old Chhabria-based company Dilip Chhabria Designs Pvt Ltd (DCDPL) had deployed 120 DC Avantis, touted as India’s premier sports car and sold to customers in India and abroad, the majority of which are high net worth individuals.
Dubbed the first Indian sports car made in India, DCDPL launched its first model in 2016, a year after obtaining approvals from the Automotive Research Association of India (ARAI).
Mumbai Police’s Crime Intelligence Unit of Crime Branch-CID foiled the scam.
The investigations were launched after Mumbai police were informed that a two-seater DC Avanti sports car, designed by Chhabria and allegedly bearing a false registration number, was due to reach the Trident Hotel at Nariman Point. However, he did not show up.
The next day, a similar trap was set at the Taj Mahal hotel in Colaba in which the car was intercepted.
The owner of the car, Indermal Ramani, produced the vehicle ownership documents registered with Chennai RTO, which were found to be genuine.
However, after further investigation, the police learned that another car with the same engine and the same chassis number was registered in the Haryana.
The CIU-Crime Branch widened the investigation and found that several loans, averaging Rs 42 lakh per vehicle, had been taken out on around 90 of these cars by the DCDPL, posing as clients of their own. vehicles manufactured.
Subsequently, these mortgaged cars were sold to other customers before or after receiving the financing by fraudulent means, and the exact amount of losses to the government under unpaid taxes, customs duties and GST is being determined.
In this way, the CIU suspects that the DCDPL – founded in 1993 and went bankrupt in 2018 – may have deceived many financial companies or NBFCs like BMC Financial Services.
Recall that cricketer Dinesh Karthik seized a consumer court in 2018 after Chhabria failed to reimburse Rs 5 lakh for a car reservation. Chhabria was caught in his workshop at Andheri’s MIDC, sending shockwaves through the country’s automotive and financial fraternity.