Mumbai, December 29: Dilip Chhabria, one of India's most renowned car designers, was arrested by the Mumbai Police a day earlier in connection to an alleged financial scam involving his firm 'DC'. As the "scandal" begins to unfold, the reason why Chhabria was taken into arrest has emerged. Here's what the police probe has revealed so far.

The alleged scam is estimated to be to the tune of Rs 40 crore, but may run into an even higher amount, officials privy to the case told reporters. The case involves both - a financial scandal allegedly aimed at evading taxes and forgery as some cars designed by DC Studio were reportedly found with the same engine and chassis numbers.

The financial scam involves the DC Avanti car, which is priced at around Rs 42 lakh. According to the investigators, Chhabria's firm took loans for the cars they designed themselves and sold the same to third parties. This illegal act is known as hypothecation.

The loans were availed from Non-Banking Financial Companies (NBFCs), and around 90 cars were sold in such a manner, claimed the Crime Investigation Unit (CIU) of the Mumbai Crime Branch.

Chhabria is suspected to have sold 90 cars in such manner, reported India Today citing the officials. The report further claimed that his firm is accused of taking multiple loans on some cars.

The scandal came to light after the police held the owner of one such DC Avanti car. The car owner was able to produce genuine documents, but it was further revealed that a car with the same engine and chassis number was registered in Haryana.

(The above story first appeared on LatestLY on Dec 29, 2020 05:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).