MUMBAI: With the arrest of India’s leading car designer Dilip Chhabria on Monday, police claim to have unearthed an interstate car financing and forgery scam worth nearly Rs 100 crore. On Tuesday, Chhabria (68) was produced before the Esplanade metropolitan magistrate, which remanded him in police custody till January 2.

According to Economic Times, police claimed Chhabria’s firm — Dilip Chhabria Designs Pvt Ltd (DCDPL) — manufactured 127 Avanti cars in the last three years and sold them in India and abroad with multiple registrations in various states. As many as 90 of these cars were also used for fraudulent financing by taking loans from non-banking financial companies (NBFCs), they added.

Assistant police inspector Sachin Waze said the accused, using DCDPL, posed as a customer of Avanti cars and took multiple loans on each vehicle from various NBFCs, averaging to Rs 42 lakh per car. He then registered the cars in another state before selling them to a third party. Many of the loans were declared NPAs by the NBFCs.

Investigations showed Chhabria had hypothecated 41 cars with the BMW India Financing Services and 16 cars were never registered with any RTO.