Luxury car loan scam: ED raids 12 premises in Pune

The Enforcement Directorate (ED) conducted coordinated search operations at 12 residential and commercial premises in Pune between Tuesday and Wednesday, in connection with a Rs19.38-crore luxury car loan fraud at the State Bank of India’s (SBI) University Road branch.

- Ashish Singh

The searches were executed under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Wednesday.

According to the ED, the probe has uncovered a well-structured fraud network involving car dealers, borrowers, an auto loan agent, and officials of the SBI branch. Borrowers allegedly used forged documents to secure high-value car loans, which were then used to purchase luxury vehicles, including BMW, Volvo, Mercedes-Benz and Land Rover models. These loans, officials said, were processed and approved without mandatory verification, enabling the accused to obtain vehicles far beyond their genuine eligibility.