Although higher-ups have maintained a guarded silence over the busting of vehicle loan fraud racket, Anantnag Police has arrested two persons for fraudulently getting a vehicle loan in the name of innocent poor persons. Influential persons are reportedly involved in this high-profile racket.

The police did not divulge details about the case. "I am not authorized to give any statement on this case," SHO Anantnag told International Business Times when asked about details of the fraud. 

How fraud was committed?

On September 16, 2021, one Fayaz Ahmad Khan of Anantnag was shocked to receive a notice from the Ellaquai Dehati Bank branch Dailgam, Anantnag regarding payment of Rs 10,53,405 as a loan granted to him for purchasing a car.

Anantnag Police busts loan fraud

As per notice loan worth Rs, 6,80,000 was granted to Fayaz Ahmad on 4/12/2015 for purchasing a vehicle. As Fayaz has not paid any installment, the loan has turned NPA and there was an outstanding of Rs 10,53,405 against him.

Shockingly, poor Fayaz Ahmad had never applied for the vehicle loan so he took the matter with local police.

Sources said that during the initial investigation, it was established that two accused Abid Syed Bhat and Amir Salam Bhat fraudulently got a loan in the name of Fayaz.

"Poor Fayaz Ahmad had submitted some documents including Adhar card and some photographs to Abid Syed Bhat for renewal of his driving license in December 2015. Abid misused these documents and fraudulently got a vehicle loan with the connivance of bank officers," sources said and added that the loan was approved on the documents submitted by Fayaz Ahmed for renewal of his driving license.

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Some officers of the bank were also allegedly involved in the fraud as the loan was sanctioned without verifying the person who had applied for the same.

Fayaz approaches Court to get FIR registered against accused

Shocked after receiving a notice of paying Rs 10 lakh to the bank, Fayaz Ahmed approached the local police but to avail. "Instead of investigating the matter seriously cops rather adopted delay tactics," a source said.

Fed-up with the repeated assurances, Fayaz Ahmed approached the Court for justice. After listening to the grievances of Fayaz Ahmed, the Judicial Magistrate Anantnag directed the police to take action against the accused and submit a status report. Court also directed the police to register FIR in case.

It is also reported that local police initially even avoided the arrest of these influential alleged fraudsters. It is said that when the local police officers went to check the residence and call the accused in for questioning, a senior police officer from the operations wing interfered and discouraged the law and order cops from making the detention. The locals were dismayed looking at how these accused managed to send the cops back despite having a long history of questionable dealings.

Reports suggest after the intervention of higher-ups, the investigation against the influential alleged fraudsters is back on track and will be taken to a logical conclusion without any fear or favour by the local police.

Following directions of the Court, two accused were arrested by the police and the investigation is on.