Indore Police have uncovered a finance company vehicle seizure racket in which private agents allegedly used leaked borrower data to illegally seize vehicles from loan defaulters and demand money for their return. One accused has been arrested in the case, while two others remain absconding, police said.

The case surfaced in Indore’s Hiranagar area after a local resident alleged that his financed motorcycle was forcibly taken away by three men who claimed to be acting on behalf of a finance company. Police said the accused were not authorised recovery agents but were working on commission and allegedly targeting borrowers whose instalments were overdue.

Complaint Triggers Probe

According to officials, the case came to light after Rajiv Nagar resident Shakeel Khan filed a complaint with Hiranagar police. Khan, a mechanic by profession, told police that he had purchased a motorcycle in 2025 through vehicle finance from L&T.

He alleged that while returning home from Aurobindo Hospital two days ago, three men intercepted him near the MR-10 area and accused him of defaulting on loan instalments. The men then forcibly took away his motorcycle and left the spot.

Fraud Recovery Tactic

Khan later approached the finance company office to verify whether the vehicle had been lawfully repossessed. Officials there reportedly told him that no authorised staff member had seized the motorcycle.

This raised suspicion and prompted Khan to begin tracing the vehicle on his own. During his search, he reportedly spotted one of the men riding the motorcycle. When confronted, the accused allegedly demanded money in exchange for returning the vehicle.

Police said this established that the seizure was not part of any lawful recovery process but an extortion attempt carried out under the guise of loan recovery.

One Accused Arrested

Acting on the complaint, Hiranagar police launched an investigation and arrested Neeraj Lodhi. During questioning, Lodhi allegedly admitted that he and two associates had been identifying vehicle owners with pending instalments and forcibly taking possession of their vehicles.

Police said the accused were working on commission and were not officially employed by any finance company. Investigators suspect they were part of an informal recovery network operating outside legal procedures and using borrower vulnerability for financial gain.

The two other accused named by Lodhi are currently absconding. Police teams have been deployed to trace and arrest them, as per reports.

Data Leak Under Lens

A key part of the investigation now centres on how the accused obtained sensitive borrower information. Police said preliminary findings suggest that lists of loan defaulters were being shared with the accused through unofficial channels.

According to investigators, the men received details of customers who had defaulted on instalments, including contact numbers and vehicle information, and used that data to identify and target victims.

Police are now examining whether insiders linked to finance companies or third-party recovery networks leaked customer records. Officials indicated that those found responsible for sharing data could also be made accused in the case.

Recovery Rules Questioned

The case has raised fresh questions over loan recovery practices and the role of unauthorised agents in vehicle repossession. Under existing norms, finance companies must follow due legal process while recovering financed assets and cannot permit coercive seizure by unauthorised individuals.

Any use of force, intimidation or unlawful repossession falls outside regulated recovery procedures and may attract criminal liability. The latest case is likely to draw scrutiny from regulators and law enforcement over informal recovery arrangements and borrower data handling.

Probe Expands Further

Police said the investigation is now focused on identifying the full network behind the finance company vehicle seizure racket, including those who supplied borrower data and enabled illegal recoveries.Officials are also examining whether similar incidents have taken place in other parts of the city.

A failed ransom bid in the Indore kidnapping case ended within seven hours on Thursday after police rescued two boys and arrested four neighbours who allegedly plotted the abduction to make quick money. According to officials, the accused had surveyed children from well-off families in their locality before picking up two boys from a public garden in Indore’s Lalaram Nagar.

Children Traced Fast

The two boys, Naitik, 9, and Samrat, 11, were allegedly abducted on Thursday evening from a garden in Lalaram Nagar by people known to them. Police said the children were taken to a flat in Dutt Nagar, where they were kept while the accused prepared to seek ransom from their families.

The Indore kidnapping case was cracked after a relative of one of the boys alerted family members when the children failed to return home. The information quickly reached police, triggering a city-wide search operation.

Four Accused Arrested

Police arrested four accused within hours of the complaint. They were identified as Vineet Prajapati, 22, his sister Radhika Prajapati, 19, Lalit Sen, 21, and his wife Tanisha, 20.

Investigators said Vineet and Radhika were the alleged masterminds of the plot, while Lalit and Tanisha helped execute the kidnapping. All four lived in the same neighbourhood and were known to one another.

Shortcut For Money

According to police, the accused planned the abduction after prolonged financial distress and unemployment. Vineet had reportedly been out of work for six months after losing his job and was struggling with unpaid rent and debt.

Lalit, a driver, was also unemployed for months. Tanisha had worked earlier in the private sector but was reportedly facing financial strain. Officials said the group decided to target children after discussing ways to earn money quickly.

Police sources indicated that Tanisha had asked Radhika about a “shortcut” to make money. During that conversation, Radhika allegedly suggested kidnapping children who visited a local garden and demanding ransom from their families.

Children Were Surveyed

Police said the accused had watched children visiting the garden for several days and identified those they believed came from financially strong households. The plan was to abduct children from affluent families and demand ransom.

However, investigators said the accused misjudged their targets. Instead of picking children from wealthy homes, they allegedly abducted two boys from working-class families. Officials said the accused were unaware that one child’s father runs a juice cart while the other earns by playing the dholak.

Lured With Promise

Police said the children were taken away on the pretext of being shown birds and animals. One of the accused allegedly persuaded the boys to accompany her before taking them to a flat.

During questioning, the boys told police they were made to sit inside the room, given food and allowed to play mobile games. Later, when they insisted on going home, the accused allegedly threatened them after failing to secure money. Officials said the children were then told to hide when police arrived and were made to believe “goons” had come to harm them.

Police Rescue Operation

Indore Police tracked the children using mobile location inputs and surveillance leads. According to officials, plainclothes personnel monitored the suspected flat after noticing unusual activity, including repeated switching of lights and movement inside.

Once suspicion was confirmed, police raided the premises and rescued both boys safely. The four accused were detained on the spot.

Police Commissioner Santosh Singh monitored the operation through the night, officials said. Senior officers coordinated teams across multiple police station limits to ensure the children were traced before any ransom exchange could take place.

Earlier Crime Plan

During interrogation, police found that the four had allegedly discussed another serious crime days earlier. Officials said the group had first planned to rob a jewellery shop about a week ago but dropped the idea after it failed to materialise. Investigators believe the kidnapping plan was then drawn up as an alternative.