NEWS & ADVICE : CAR LOANS
Vehicle loan fraud rampant in Gopalganj, Bihar
By Vaibhav Aggarwal
Jan 3, 2008
Print    Email    RSS   

Gopalganj: Taking advantage of the loopholes in the system, some fraudsters with active support of some transport department officials are perpetrating vehicle loan frauds in Gopalganj district, a part of the Saran Division of Bihar state. The modus operandi of these gangsters is pretty simple. They get bank loans for vehicles by producing forged and fake documents in different names. These vehicles are then used for some time before being sold into remote parts of adjoining Uttar Pradesh, which are difficult to recover or track. Ironically, these miscreants also lodge complaints of theft or loot of their vehicles in Gopalganj police station after selling the vehicles.

The district police SP, has said that police is aware the operations of such a racket involving vehicle loan fraud in the district and is pursuing the matter seriously.

The gangsters don't hesitate to use legal means to get their complaints registered. As reported in one case, Kailash Bhagat, who is believed to be a part of the gang, was refused by the police to register his FIR, approached the CJM court, filed a case and got orders directing the concerned police station to lodge a case. On asked about what actions the police is taking against such miscreants, the SP said that police investigates the matter and files prosecution report in the court, and if the case is baseless then its the courts who take action against such people.

A nexus between musclemen, politicians, brokers and bank officials has been a regular feature in any such loan fraud especially in rural parts of the country. In a recent incident in Jalaun, Uttar Pradesh, forged documents and fake identities were created by brokers and bank officials to take loans and later loan recovery was enforced on a poor labourer, who helplessly committed suicide.

Sub prime crisis and bad loans are a result of a lack of proper screening mechanism when a person approaches a bank for a loan. Large default in sub-prime personal loans has forced the major banks to realign their scrutiny process and enforce more rigorous checks before giving loans especially small ticket personal loans. However, when the bank officials themselves are a part of any such racket, the situation becomes really serious.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Manage your loans, avoid recovery agents
How good are floating rate car loans?
Managing loans through difficult times
Tata Nano: How would Bank Loans look
This is how a bank lends money


how to download my car loan statement , loan a/c...
CAR LOAN STETMENT
Hello I am looking to renew my car insurance and I...
my loan no

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive