Ten stolen cars recovered after Indore police busted car-rental fraud ring targeting rural towns.
Indore, India — A criminal gang that allegedly exploited online vehicle rental platforms to defraud car owners has been busted by Indore police.
Authorities arrested the suspected mastermind, Mohammad Hanif, in connection with a widening car-rental fraud scheme that involved hiring vehicles using forged identities and reselling them in rural areas.
At least 10 cars have been recovered from the towns of Rajgarh and Biaora, police confirmed on Tuesday.
How the Fraud Was Carried Out
The operation came to light after Pawan Saxena, one of the victims, listed his car on a digital platform that connects vehicle owners to potential renters.
According to his statement to the Pardeshipura Police, Saxena became suspicious when the GPS tracker on his vehicle was abruptly disabled, and the renter, who identified himself under a false name, stopped answering calls.
Saxena eventually filed a police complaint, prompting authorities to launch a broader investigation. It was soon discovered that the group behind the scam had used similar tactics on other car owners across , Dewas, and Jabalpur.
The gang reportedly operateIndored under a convincing pretext: offering standard rental terms and later requesting an extension to keep the car longer. This method helped build trust with owners, who were unaware that the vehicles were being sold or pawned in rural markets under fraudulent claims.
Key Suspects and Recovery Efforts
The primary accused, Mohammad Hanif, reportedly collaborated with two other individuals: Mohammad Muinuddin and Shailendra. During police interrogation, Muinuddin confessed that the vehicles were pawned or sold for amounts ranging from ₹2 lakh to ₹2.5 lakh each.
“He pawned the car,” Muinuddin admitted, adding that the process was repeated multiple times across districts.
Using the confessions and mobile tracking data, police were able to locate and recover ten vehicles from buyers in Rajgarh and Biaora, two semi-rural towns in Madhya Pradesh.
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Investigators say the buyers were largely unaware that the cars were rented and not lawfully owned by the sellers.
As of now, eight complaints have been registered by affected vehicle owners. The police believe that more victims could surface in the coming days as awareness spreads about the fraudulent operation.
FIR and Legal Proceedings
The police have filed a First Information Report (FIR) against the suspects under Sections 318(4), 316(2), and 3(5) of the Bharatiya Nyaya Sanhita (BNS), 2023, which pertain to identity fraud, criminal breach of trust, and organized financial deception.
Authorities noted that the suspects relied heavily on forged Aadhaar and PAN cards to avoid suspicion and bypass basic KYC verifications during the rental process. This has raised questions about lax verification systems on peer-to-peer car-sharing platforms in India.
“They used fake IDs to rent vehicles,” confirmed Pardeshipura police officials.
“More victims are coming forward,” the officer added.
Online Scams and the Rise of Rural Resale Rings
This case adds to a growing list of cyber-enabled property crimes where digital marketplaces are used to commit offline fraud. While online platforms make renting easier, loopholes in ID verification and insurance protection often leave car owners vulnerable.
Indore’s police department has since advised citizens to use only verified platforms and to install real-time GPS tracking with motion alerts in their vehicles. Owners are also encouraged to set clear contractual return deadlines and to avoid granting extensions without formal documentation.
Authorities are continuing to trace the wider network involved in this rural car resale ring, and have not ruled out the involvement of used car dealers, mechanics, or fake documentation handlers in nearby districts.
A Broader Pattern Across India?
Vehicle fraud using online rental listings is not new in India, but this case has reignited concerns about the speed at which criminals exploit digital services. According to industry estimates, India’s car rental market is projected to exceed ₹5 billion by 2027, making it a potential hotspot for tech-savvy fraudsters.
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Indore police have pledged to work with state cybercrime units to recommend policy changes and tighter identity checks on vehicle rental platforms. For more on the original case, read the Times of India’s full report.
