Rajesh Chauhan, a resident of Baltana was arrested while the alleged kingpin J P Saxena, and his accomplice, Gogi Grover, are still at large, the police said.

The police were tipped off that a gang was involved in preparing forged documents of vehicles to sell them after getting them financed from banks and other financial institutions by submitting fake certificates and identities. They started investigations and conducted a raid in a house in Phase X in Mohali and recovered a bunch of fake rubber stamps and other documents.

In a specific case, the police had come across documents which revealed that the gangsters purchased a vehicle from Jagadhari and after destroying the original documents, procured duplicated ones from Karnal, which they forged to sell the vehicle further, said the investigating officials.

Police hope to recover a fleet of vehicles with the help of information from the arrested gangster. “It seems to be a big racket operating in the region since long,” said an official.