ED files PMLA charge sheet in Aizawl over ₹146 crore fake vehicle loan scam
Synopsis
The ED has charge-sheeted 14 people in Aizawl over a ₹146.67 crore fake vehicle loan scam at MMFSL — where over 1,800 fictitious loan files, forged KYC documents, and sham bank accounts mimicking Mahindra's name were used to siphon ₹75.33 crore, later laundered into properties across Mizoram and Assam.
Key Takeaways
The ED filed a PMLA prosecution complaint on 30 April before a special court in Aizawl against Jakir Hussain and 13 others .
Accused Hussain allegedly handled more than 600 fake loan files ; co-accused Proloy Das allegedly created approximately 1,200 more .
Total fraudulent loan disbursements by MMFSL amounted to approximately ₹146.67 crore ; net proceeds of crime estimated at ₹75.33 crore .
Approximately ₹71.34 crore was routed back to MMFSL as fake EMI repayments to make fictitious accounts appear genuine.
The ED provisionally attached properties worth approximately ₹35.62 crore , including land in Mizoram and Assam , insurance policies, and two vehicles.
Searches were conducted at nine premises on 12 February 2025 ; attachment orders confirmed by the Adjudicating Authority on 19 August 2025 .
The Enforcement Directorate (ED) on Thursday, 30 April, 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 large-scale fraudulent vehicle loan scam involving Mahindra & Mahindra Financial Services Limited (MMFSL). According to the central probe agency, total loans fraudulently disbursed amounted to approximately ₹146.67 crore, with net proceeds of crime estimated at ₹75.33 crore.
How the Alleged Fraud Was Orchestrated
Jakir Hussain, while serving as Area Business Manager at the Aizawl Branch of MMFSL, was allegedly the principal architect and mastermind of the scheme. In alleged criminal conspiracy with car dealers, MMFSL employees, and other associates, he reportedly created hundreds of fictitious customer profiles using forged KYC documents — including Aadhaar Cards, Voter IDs, and income certificates — and caused vehicle loans to be disbursed to non-existent customers without any actual vehicle sale.
As admitted by the main accused, he personally handled more than 600 fake loan files, while approximately 1,200 more were allegedly created by 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 fictitious accounts amounted to approximately ₹146.67 crore.
Layering the Proceeds: Fake Bank Accounts and Shell Transfers
To conceal and layer the proceeds of crime, Hussain allegedly conspired with accused H. Lalthankima and Edenthara to open fraudulent bank accounts with names deceptively similar to MMFSL — namely Mahindra Finance Limited and Mahindra and Mahindra Financial Services — with the 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 Hussain, transferred substantial portions of those funds into these fake accounts.
A total of approximately ₹87.13 crore was credited to these two fraudulent accounts, of which ₹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.
How Funds Were Routed and Integrated
Investigation revealed an elaborate layering mechanism involving multiple bank accounts held in the names of MMFSL employees, associates, relatives, and fictitious entities. A portion of the proceeds of crime — approximately ₹71.34 crore — was deliberately routed back to MMFSL as EMI repayments 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 ₹75.33 crore. According to the ED, accused Hussain utilised 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 ₹2.06 crore and high-value vehicles purchased in the names of third parties. Transaction values were reportedly understated in registered sale deeds to conceal the true source of funds.
Searches, Seizures, and Attachments
Searches were conducted at nine premises on 12 February 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 approximately ₹35.62 crore through three Provisional Attachment Orders under Section 5 of the PMLA, 2002. The attached properties include immovable assets across Mizoram and Assam, bank balances in multiple accounts, insurance policies, and two vehicles — a Kia Seltos and a Hyundai Alcazar. The Provisional Attachment Orders were confirmed by the Adjudicating Authority vide order dated 19 August 2025. Further investigation is currently underway.
The ED had initiated its probe based on two FIRs registered by the Mizoram Police — one dated 29 March 2024 at the C&EO Police Station, Aizawl, on a complaint by the Business Head of MMFSL, and another dated 20 March 2024 at the Aizawl Police Station on a complaint by the Authorised Signatory of MMFSL. Chargesheets were subsequently filed by the Mizoram Police before the competent court.
Point of View
800 fictitious loan files and a layering trail that routed funds back as EMIs to keep the fiction alive for years. This case should prompt MMFSL and peer NBFCs to revisit their internal audit and tele-verification protocols, particularly in geographically remote branches where on-ground verification is harder to enforce.
NationPress
1 May 2026
Frequently Asked Questions
What is the Aizawl vehicle loan scam that the ED has filed a charge sheet over?
It is an alleged large-scale fraud in which Jakir Hussain, a former Area Business Manager at the Aizawl branch of Mahindra & Mahindra Financial Services Limited (MMFSL), reportedly orchestrated the disbursement of vehicle loans worth approximately ₹146.67 crore against fictitious customer profiles created using forged KYC documents. The net proceeds of crime are estimated at ₹75.33 crore.
Who are the accused named in the ED's prosecution complaint?
The ED has named Jakir Hussain and 13 others, including co-accused Proloy Das, H. Lalthankima, and Edenthara, along with representatives of four car dealerships — M/s CK Cars, M/s Rafael Nissan (M/s Highland), M/s AIDU Motors Pvt. Ltd., and M/s National Business Enterprises.
How much property has the ED attached in this case?
The ED has provisionally attached movable and immovable properties amounting to approximately ₹35.62 crore through three Provisional Attachment Orders. These include properties in Mizoram and Assam, bank balances, insurance policies, and two vehicles — a Kia Seltos and a Hyundai Alcazar.
How did the accused allegedly conceal the fraud proceeds?
According to the ED, the accused created fraudulent bank accounts with names nearly identical to MMFSL at Mizoram Rural Bank, Aizawl, and routed funds through multiple layered accounts. Approximately ₹71.34 crore was also routed back to MMFSL as fake EMI repayments to make the fictitious loan accounts appear genuine.
What was the basis for the ED's investigation?
The ED initiated its probe based on two FIRs registered by the Mizoram Police in March 2024 — one on a complaint by the Business Head of MMFSL and another by the Authorised Signatory of MMFSL — for offences under the Indian Penal Code, 1860.
