Leading car designer Dilip Chhabria was arrested on December 28 by the Mumbai Police on charges of cheating and forgery worth nearly Rs 100 crore.
Chhabria, the founder of car modification studio DC Design, has been remanded in police custody till January 2, according to a report by The Times of India.
Nearly 90 DC Avanti cars were used to allegedly obtain loans fraudulently from non-banking financial companies (NBFCs) such as BMW Financial Services. The size of the loans averaged Rs 42 lakh per car, and many have been declared as NPAs (non-performing assets) by the NBFCs, the report said.
The police also stated that Dilip Chhabria Designs Pvt Ltd (DCDPL) manufactured 127 Avanti cars in the past three years, and registered them multiple times in regional transport offices (RTOs) of various states. The cars were sold both in India and overseas.
According to a report by The Indian Express, the police also seized a DC Avanti car with a fake registration number outside the Taj Mahal Hotel.
The vehicle was registered in Tamil Nadu, but its chassis and machine numbers were registered with the Haryana RTO under a different number. The car owner has been made a complainant in the case, the report said."The car owner, who hails from Tamil Nadu, had come to know about this… Curiously, the registration address was of the Haryana branch of Chhabria's company," said Assistant Inspector Sachin Vaze, as quoted by the paper.