AIZAWL: 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 involving Mahindra & Mahindra Financial Services Limited (MMFSL). The complaint was submitted by the ED's Aizawl Sub Zonal Office under Sections 44 and 45 of the PMLA for offences defined under Section 3 and punishable under Section 4 of the Act.
The investigation was initiated based on two FIRs registered by the Mizoram Police in March 2024 at the C&EO Police Station and Aizawl Police Station, following complaints filed by officials of MMFSL. These FIRs alleged multiple offences under the Indian Penal Code, 1860, and were later supported by chargesheets filed before the competent court.
According to the ED, Jakir Hussain, who was serving as Area Business Manager at MMFSL's Aizawl branch, was the mastermind behind a large-scale, organised fraud. Acting in collusion with car dealers, company employees, and other associates, he allegedly created hundreds of fake customer profiles using forged KYC documents such as Aadhaar cards, voter IDs, and income certificates. These fabricated profiles were then used to fraudulently secure vehicle loans without any actual vehicle sales. Hussain reportedly handled over 600 fake loan files, while another accused, Proloy Das, created around 1,200 more.
The total loan amount disbursed 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 these fictitious accounts is estimated at Rs 146.67 crore. To launder the proceeds of crime, Hussain and his associates allegedly opened bank accounts with misleading names resembling MMFSL at Mizoram Rural Bank. Funds were routed through these accounts, with approximately Rs 87.13 crore deposited, including Rs 75.34 crore transferred by the car dealers.
The investigation revealed a complex layering mechanism involving multiple bank accounts, fake SIM cards for tele-verification, and routing of funds through various individuals. A portion of the funds-around Rs 71.34 crore-was recycled back to MMFSL as EMI payments to make the fraudulent loans appear legitimate. The net proceeds of crime are estimated at Rs 75.33 crore. (IANS)
Also Read: Mizoram: Schools in Aizawl shut amid heavy rainfall, landslide threat