Mahindra Frauds: Dealer JK Motor Held For Fraud

Published: Wednesday, March 6, 2013, 16:54 [IST]

Customers who bought cars from an authorised Mahindra First Choice dealer are now a frustrated lot, as the cars they purchased from this dealer in New Delhi have had their cars seized by the police for absolutely no fault of theirs, reports Times of India.

The dealer in question is J K Motor Corps, which had its franchise in Lajpat Nagar. It has been found that the dealer purchased cars from money borrowed from financiers, but never paid them back after selling the cars. The issue came to light after one of the financier filed a complaint with the police.

JK Motor Corps Director, Pankaj Nagpal has since been arrested for cheating and criminal breach of trust. Prem Chugh, the financier who was cheated off of INR 2.5 crores told the police in his statement, "I'd asked him about the security for the finance he wanted to buy the cars. He assured me he'd hand over original papers of the purchased cars with their sale letters to me as security," as quoted by TOI.

Meanwhile, the hapless customers who bought the cars, some of which include second-hand Skodas, BMWs, Honda CRVs, Volkswagen Passats and other luxury models have no clue about the fate of their cars or the money they paid for it, since the original vehicle registration certificates are with the financier now.

Article Published On: Wednesday, March 6, 2013, 16:54 [IST]

More from DriveSpark