Mumbai, Nov 28 – The Enforcement Directorate (ED) is cracking down on a vehicle‑loan scam that targeted a State Bank of India (SBI) branch in Pune. ED officials carried out raids on 12 residential and office locations belonging to loan applicants and car dealers, seizing documents that prove the fraud.
Investigators found that the borrowers had obtained large car loans by submitting forged paperwork, thereby defrauding the bank. The ED’s search operations, conducted on 25–26 November under the Prevention of Money Laundering Act (PMLA), 2002, also targeted former SBI branch manager Amar Kulkarni.
Through the search, the authorities uncovered a range of properties bought by the loan‑taking borrowers, incriminating paperwork and a number of high‑end vehicles taken from the premises, all under section 17 of the PMLA. The investigation was launched after FIRs were filed by the Central Bureau of Investigation, the Adarsh Centre for Bureau of Investigation (ACB) in Pune, and the Shivajinagar Police Station, invoking various sections of the Indian Penal Code and the Prevention of Corruption Act.
It is alleged that Kulkarni, who served as Chief Manager at SBI’s University Road Branch from 2017 to 2019, abused his position and conspired with Auto Loan Counselor Aditya Sethia and several borrowers. Together they processed and approved high‑value car loans in violation of the bank’s lending policy, using fake documents. In many cases, the borrowers submitted false quotations with inflated amounts to boost loan margins.
The ED’s findings show that the borrowers, in coordination with the loan agent and Kulkarni, purchased premium cars—including BMWs, Volvos, Mercedes and Land Rovers—using falsified documents. The seizure of these vehicles and associated evidence underscores the seriousness of the misconduct.
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