There are several actual cases that has taken places known to me personally. A fraudulent dealer of a reputed Automobile company at Hyderabad accepts such banker's demand draft in his name from the borrower, credits in his account and later lures borrower to go and take delivery of vehicle at GOA and assures that he can save at least 5% of vehicle cost, as taxes were less. Another suggestion is that that particular model is not readily available with them and it may take two months to get such vehicle from the manufacturer, and as it is readily available in God, he can take immediate delivery. The borrower goes there, never finds such dealer and returns back, a dealer can never be contacted, bank demands inspection of the vehicle for the invoice, Temp Registration, duplicate copy and other formalities and innocent and illiterate lorry driver fails to submit the same.
The Banker escapes the liability by simply stating that the borrower has submitted an invoice and given specific authorization to issue demand draft of such reputed dealer and their duty ends there. Delivery of vehicles by dealers is no concern to them.
Legally it is the stand as bank carried outstanding instructions of a borrower and it is the responsibility of the borrower to get delivery of the vehicle.
In those cases, the borrower being influential filed a Police complaint, got the dealer arrested when he is spending his night with an extra artist, arrested, beaten and the amount recovered.
The lesson learned by the banker is that he should provide demand draft number, get confirmation of Engine No. Chasis No allotted to the borrower and then send the amount and strictly instructing the borrower not to part with DD unless the vehicle is delivered.
Now the remedy in your case is filing a police complaint as immediately as possible and also give notice to the Manufacturer that appointed such dealer.'s fraudulent dealing This should be done with the help of a local advocate.. The banker is not concerned with such fraud of a dealer.