Finance firm manager booked for fraudulent sale of borrower’s truck #IndiaFinance

Pilibhit: Acting on a court order, police registered a case against the manager and staff of a finance company in Pilibhit on Sunday for fraudulently selling a borrower’s truck. The borrower, Mohammad Farukh of Dhakia Jajalpur village, had taken a Rs 21 lakh loan from the company on March 30, 2021, to purchase the vehicle.
According to the complaint, the manager of Chola Mandalam Finance and Investment Company allegedly deceived Farukh into signing stamp papers typed in English—so that the latter could not understand the provisions— under the pretext of restructuring his EMI payments. Initially set at Rs 46,006 per month, Farukh had been making regular payments for two years but faced financial difficulties due to losses in the transport business. Seeking relief, he approached the finance company on May 25, 2023, requesting a lower EMI and an extended repayment period.
The manager took custody of Farukh’s truck, falsely promising its return once the revised EMI plan was finalised. However, the borrower later discovered that his vehicle had been sold when he received a transfer request from the road transport authority.
Farukh sent a legal notice to the finance company on Oct 1, 2023, but received no response. His complaints to local police and the superintendent of police (SP) also went unanswered. The matter was finally taken up by the Chief Judicial Magistrate’s court in Pilibhit, which ordered police to file an FIR.
Sungarhi police station SHO Rajeev Kumar Pandey said that the finance company manager and staff have been charged under BNS section 420 for cheating and dishonesty.