ED files charge sheet in Aizawl over multi-crore fraudulent vehicle loan scam ​

Aizawl, April 30 (SocialNews.XYZ) The Enforcement Directorate (ED) has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, before a special court in Aizawl against Jakir Hussain and 13 others in connection with an alleged fraudulent vehicle loan scam, the central probe agency sources said. ​

The Central agency said that the ED, Aizawl Sub Zonal Office, has filed a Prosecution Complaint under Sections 44 and 45 of the PMLA, 2002, before the Special Court in Aizawl, against Jakir Hussain and 13 others in a case of fraudulent vehicle loans involving Mahindra & Mahindra Financial Services Limited (MMFSL) under Section 3, punishable under Section 4 of the PMLA, 2002. ​

The ED initiated an investigation based on two earlier FIRs registered by the Mizoram Police. FIR dated March 29, 2024, was registered at the C&EO Police Station, Aizawl, on a complaint by the Business Head of Mahindra & Mahindra Financial Services Limited (MMFSL) for offences under various Sections of the Indian Penal Code, 1860. ​

Another FIR, dated March 20, 2024, was registered at the Aizawl Police Station on a complaint by the Authorised Signatory of MMFSL for similar offences. Chargesheets were subsequently filed by the Mizoram Police before the competent court. ​

Investigation under PMLA revealed that Jakir Hussain, while serving as Area Business Manager at the Aizawl Branch of MMFSL, was the principal architect and mastermind of a large-scale, organised fraud. ​

In criminal conspiracy with car dealers, MMFSL employees, and other associates, he created hundreds of fictitious customer profiles using forged and fabricated KYC documents such as Aadhaar Cards, Voter IDs, and income certificates, and fraudulently caused the disbursement of vehicle loans to non-existent customers, without any actual vehicle sale. ​

As admitted by the main accused, he handled more than 600 fake loan files, while approximately 1,200 more were created by the co-accused, Proloy Das.​

The total loan amounts disbursed by MMFSL to four accused car dealers - M/s CK Cars, M/s Rafael Nissan (M/s Highland), M/s AIDU Motors Pvt. Ltd., and M/s National Business Enterprises - against such fictitious accounts amounted to approximately Rs 146.67 crore. ​

To conceal and layer the Proceeds of Crime, Jakir Hussain, in connivance with accused H. Lalthankima and Edenthara, created fraudulent bank accounts in names deceptively similar to MMFSL - namely “Mahindra Finance Limited” and “Mahindra and Mahindra Financial Services” - with Mizoram Rural Bank, Aizawl. ​

According to the ED, loan disbursements were first credited to the bank accounts of the accused car dealers, who, on oral instructions from Jakir Hussain, in turn transferred substantial portions of those funds to these fake accounts. ​

A total of approximately Rs 87.13 crore was credited to these two fraudulent accounts, of which Rs 75.34 crore was directly deposited by the accused car dealers. ​

Tele-verification of fake loan files was conducted using temporary SIM cards obtained on fake identities, which were subsequently destroyed to eliminate evidence. Investigation revealed an elaborate layering mechanism involving multiple bank accounts held in the names of MMFSL employees, associates, relatives, and fictitious entities. ​

Funds from the fake accounts were further diverted to different individuals, who subsequently withdrew cash or transferred it to various other persons. A portion of the Proceeds of Crime was deliberately routed back to MMFSL as EMI repayments, amounting to approximately Rs 71.34 crore, to project the fictitious loan accounts as genuine and sustain the fraud over a prolonged period. ​

The net Proceeds of Crime generated and siphoned off amount to approximately Rs 75.33 crore. The Proceeds of Crime were ultimately integrated into movable and immovable assets. The accused Jakir Hussain utilised the siphoned funds for acquisition of immovable properties in Aizawl (Mizoram), Tezpur, Nagaon, Silchar, and Balipara (Assam) - held in the names of his wife, brother, brother-in-law, and other associates in benami arrangements - as well as for investment in life insurance policies worth approximately Rs 2.06 crore and in high-value vehicles purchased in the names of third parties. ​

Transaction values were deliberately understated in registered sale deeds to conceal the true nature and source of funds. Government-approved valuers assessed several properties at values significantly higher than the declared consideration, establishing deliberate suppression of transaction values. ​

In the course of the investigation, searches were conducted at nine premises on February 12, 2025, under Section 17(1) of the PMLA, 2002, leading to the seizure of incriminating documents. The ED has provisionally attached movable and immovable properties amounting to Rs 35.62 crore (approx.), vide three Provisional Attachment Orders (under Section 5 of the PMLA, 2002. ​

The attached properties include immovable properties across Mizoram and Assam, bank balances in multiple accounts, insurance policies, and two vehicles (Kia Seltos and Hyundai Alcazar). ​

The Provisional Attachment Orders were confirmed by the Hon’ble Adjudicating Authority vide order dated 19.08.2025. Further investigation is now underway.

Source: IANS