Mahindra And Mahindra Financial Services Ltd Vs State of Mizoram (Gauhati High Court)
Gauhati High Court denied to transfer large scale financial fraud case from Aizawl to Assam since sufficient number of witnesses have been listed by the IO to prove the case and there appears to be no compelling reason to transfer the cases.
Facts- The petitioner is a Non-Banking Financial Company registered under the Companies Act, 1956, engaged in the business of providing vehicle loans, with pan-India operations including in Mizoram where it has provided vehicle loans to over 23,000 beneficiaries.
It is the case of the petitioner that during an internal audit, it has been came to the light of the petitioner that a large scale financial fraud to the extent of over Rs. 150 crores has been allegedly perpetrated to it by its own employees in connivance with certain automobile dealers and other individuals by way of sanctioning loans on the basis of fictitious customer profiles and forged documents.
Thereafter, on the basis of the investigation, it revealed that an employee of the petitioner company, namely, one Jakir Hussain, along with certain other co-accused persons, opened fictitious bank account in the name of “Mahindra Finance Limited” at Mizoram Rural Bank through which approximately Rs. 80 crores were routed.
