Major Crackdown on Luxury Car Loan Fraud
The Enforcement Directorate (ED) has launched a significant operation in Pune, conducting simultaneous searches at 12 residential and office premises connected to loan borrowers, car dealers, and a former State Bank of India branch manager. This extensive raid is part of an ongoing investigation into a sophisticated vehicle loan fraud case that has shocked the banking sector.
Bank Official's Alleged Role in Fraud Scheme
According to agency officials, the former SBI branch manager stands accused of dishonestly processing and recommending high-value car loan proposals for borrowers. This alleged misconduct enabled numerous individuals to purchase luxury vehicles from premium brands including BMW, Volvo, Mercedes, and Land Rover through fraudulent means.
The investigation originated from First Information Reports (FIRs) registered by both the Central Bureau of Investigation (CBI) and Shivajinagar Police Station in Pune. The case specifically names Amar Kulkarni, who served as Chief Manager at SBI's University Road Branch in Pune during the 2017-2019 period.
Sophisticated Fraud Mechanism Uncovered
During the detailed probe, ED investigators discovered that Kulkarni allegedly abused his official position and entered into a criminal conspiracy with Aditya Sethia, an Auto Loan Counsellor at SBI, along with several borrowers. Their collective aim was to cheat the State Bank of India by fraudulently processing and recommending high-value car loans.
The investigation revealed that accused borrowers fraudulently availed high-value car loans using forged documents. Kulkarni allegedly processed and recommended these car loan proposals improperly and dishonestly, in clear violation of the bank's established lending policy. Crucially, he failed to verify the authenticity of the submitted documents.
In numerous instances, the perpetrators submitted fake quotations with inflated amounts to the bank. This manipulation served to increase the margin money included in the loan approvals. The loans were subsequently sanctioned based on these fabricated documents, causing substantial financial losses to the bank.
Connection to Larger Financial Fraud
In a related development, the Enforcement Directorate has released attached properties to a legitimate claimant in a money laundering case involving Cox & Kings Ltd, its promoters, and other associated parties. This action followed the Supreme Court granting consent for restitution.
The ED had identified total proceeds of crime amounting to approximately Rs 4,100 crore in the Cox & Kings Ltd fraud case. The investigation further uncovered that Rs 1,066 crore of these illicit funds was siphoned off to V Hotels Ltd, with Rs 520.80 crore remaining outstanding at the time of attachment.
The simultaneous developments in both cases highlight the ED's intensified efforts to combat financial crimes and money laundering activities affecting India's banking and financial sectors. The investigation into the Pune car loan fraud case continues as authorities work to determine the complete scope of the financial damage and identify all involved parties.
