Mumbai, June 18, 2026: A major financial fraud case linked to the electric vehicle (EV) sector has surfaced after a senior executive of an EV technology company accused a Mumbai-based automobile designer of cheating him out of ₹53 lakh through alleged misrepresentation, questionable financial transactions, and breach of trust.

The complaint, filed with the MIDC Police, led to the registration of a First Information Report (FIR) on June 15. The case was initiated following allegations made by Jayesh Thakkar, Director of Mercury EV-Tech Limited and co-promoter of Mercury Cars Pvt Ltd.

According to police sources, the accused allegedly cultivated a close business relationship with the complainant over several months by presenting himself as an experienced automotive professional capable of developing advanced electric vehicle models. Investigators claim the relationship was strengthened through personal narratives that helped build confidence and trust between the parties.

Business Partnership Led to Investment Discussions

The dispute reportedly began in 2024 when discussions were held regarding the development and modification of electric vehicles. As part of the proposed collaboration, a vehicle was sent to the designer’s Pune workshop for technical work, leading to a series of meetings and negotiations between both sides.

During subsequent discussions, the accused allegedly proposed a restructuring plan involving a separate business entity, claiming it would streamline operations and facilitate future expansion. Based on these representations, the parties entered into a Memorandum of Understanding (MoU) outlining operational responsibilities and financial commitments.

The agreement reportedly granted the accused authority to oversee certain business activities in exchange for a monthly remuneration package. The complainant also alleges that he was encouraged to make substantial investments as part of a broader business acquisition and expansion strategy.

Financial Irregularities Raise Red Flags

The partnership reportedly came under scrutiny after concerns emerged regarding financial transparency and the handling of project-related payments. The complainant claims that several transactions associated with vehicle modification projects were not routed through official company accounts as expected.

Further examination of financial records allegedly revealed inconsistencies in fund management and prompted a detailed review of the business arrangement. During this process, the complainant reportedly became aware of other legal disputes involving the accused, increasing concerns about the legitimacy of the partnership.

Alleged Diversion of Project Funds

The complaint states that in March 2025, two vehicles were brought in for modification work with invoices totaling approximately ₹1.77 crore. However, investigators are examining allegations that a portion of these funds was not deposited into the company’s designated accounts.

Police are specifically investigating claims that ₹53 lakh was transferred directly to the accused’s personal bank accounts, while some payments were allegedly received outside formal banking channels.

Police Examining Financial Trail

MIDC Police officials confirmed that an investigation is underway and that no arrests have been made so far. Authorities are reviewing bank statements, contractual agreements, digital communications, and transaction records to determine whether the alleged fraud was part of a deliberate scheme.

Investigators are also analyzing the financial trail linked to the MoU and related investment arrangements to establish accountability and verify the flow of funds.

Growing Concerns in Startup and EV Ecosystem

The case has attracted attention within business and startup circles because it highlights the risks associated with trust-based partnerships, high-value investments, and rapidly growing EV ventures. Experts note that emerging industries often attract significant capital, making robust due diligence and financial oversight essential.

Police officials stated that additional questioning of individuals connected to the transaction is ongoing. Further developments are expected as investigators continue examining banking and digital evidence.

The investigation remains active.

The Enforcement Directorate (ED) has intensified its investigation into an alleged land allocation scam in Lucknow, widening the scope of the case to include suspected money laundering, financial misconduct, and possible links between influential individuals and administrative officials.

The case centers on the Bahujan Nirbal Varg Cooperative Housing Society and has already attracted significant attention following allegations of irregular land allotments and misuse of authority. With the ED now formally involved, investigators are examining whether illegal financial gains generated through the alleged scheme were routed through complex transactions to conceal their origin.

Financial Crime Angle Brings New Focus

The matter was initially under review by state vigilance authorities after complaints raised concerns about questionable land distribution practices. However, the investigation has now entered a more serious phase after the ED initiated action under the Prevention of Money Laundering Act (PMLA), signaling potential financial crimes beyond administrative violations.

Officials believe the case may involve a broader network that benefited from irregular land allocations and manipulated procedures to secure valuable properties.

Key Reports Sought From Government Agencies

As part of the ongoing probe, the ED has requested important inquiry reports from the Lucknow Development Authority (LDA) and the Housing and Development Council. Investigators consider these documents crucial for understanding how land allotments were processed and whether established regulations were deliberately bypassed.

Sources indicate that the agency has sought the reports on an urgent basis to assist in identifying potential financial beneficiaries and tracing the movement of funds linked to the alleged transactions.

Alleged Nexus Between Officials and Land Operators Under Scrutiny

Investigators are examining allegations that a coordinated network involving intermediaries, officials, and alleged land operators may have influenced allotment decisions. Preliminary findings suggest that eligible applicants could have been overlooked while plots were allegedly transferred to individuals connected to the suspected network.

Authorities are now reviewing records to determine whether land allotment procedures were manipulated to generate unlawful profits.

Focus Shifts to Money Trail and Assets

The ED is reportedly analyzing banking transactions, investment records, property acquisitions, and possible benami assets connected to individuals under scrutiny. Investigators aim to establish whether proceeds generated through the alleged irregularities were layered through multiple financial channels to disguise their source.

The financial investigation is expected to include a detailed examination of asset ownership patterns, fund transfers, and corporate links that may reveal the extent of the suspected operation.

Larger Land Scam Network May Emerge

Officials believe the case could uncover a wider system of irregularities involving cooperative housing projects and government-linked land allocations. Investigators are also studying the role of facilitators who may have helped execute transactions or influence administrative processes.

The parallel investigations by vigilance authorities and the ED have increased speculation that additional individuals could come under scrutiny as new evidence emerges.

Possibility of Enforcement Action

Legal experts note that if evidence of money laundering is established, authorities could move toward asset attachment proceedings, deeper financial audits, and potential enforcement action against those found responsible.

For now, agencies are focused on analyzing documentary evidence, transaction records, and digital financial trails. Officials say the investigation remains active, and further disclosures may reveal the full scale of the alleged land allotment and financial irregularity network.

The probe is continuing, with authorities expected to expand their review as additional records and financial data become available.

The Enforcement Directorate (ED) has provisionally attached assets valued at approximately ₹13.83 crore as part of its ongoing money laundering investigation into an alleged scholarship fraud involving funds earmarked for Scheduled Caste (SC) and Scheduled Tribe (ST) students in Uttarakhand.

The case pertains to the alleged misuse and diversion of post-matric scholarship funds distributed between the academic years 2011-12 and 2016-17, which were intended to support the education of economically disadvantaged students.

Probe Triggered by Police Investigation

According to the ED, the money laundering investigation originated from a First Information Report (FIR) registered by the state police regarding suspected irregularities in the allocation and utilization of scholarship funds.

Investigators have alleged that several private educational institutions and associated organizations fraudulently claimed scholarship benefits by listing ineligible or unverifiable students as beneficiaries.

Among the institutions under scrutiny are educational establishments located in Uttarakhand and neighboring Uttar Pradesh. Authorities are examining the role of managements, trusts, and affiliated societies that allegedly received government funds through questionable scholarship claims.

Thousands of Claims Examined

The agency stated that investigators reviewed thousands of scholarship applications processed through the District Social Welfare Office in Haridwar during the period under examination.

According to findings cited by the ED, 6,208 scholarship claims resulted in the disbursement of nearly ₹27.98 crore in government funds. Of this amount, approximately ₹19.74 crore was reportedly transferred directly to institutional accounts, while around ₹8.24 crore was credited to bank accounts opened in the names of students.

The investigation has identified 2,895 claims that are alleged to be fraudulent. Authorities claim that many beneficiaries either could not be verified, were not enrolled in the institutions concerned, or were found to be absent during verification exercises.

Alleged Diversion Through Student Accounts

Investigators further allege that bank accounts created in the names of students were controlled by individuals associated with the educational institutions. Scholarship funds deposited into these accounts were allegedly routed back to colleges, trusts, and related entities through transfers and cash withdrawals.

The ED believes the funds were subsequently diverted through multiple channels, including educational societies and third-party entities, in an effort to conceal the source and utilization of the money.

Assets Attached as Investigation Continues

The provisional attachment of properties worth ₹13.83 crore forms part of the agency’s efforts to secure assets believed to be linked to the alleged proceeds of crime.

Officials stated that the investigation remains active, with authorities continuing to trace financial transactions, identify beneficiaries of the alleged fraud, and determine the full extent of the scholarship fund diversion.

The case is one of the most significant probes involving alleged misuse of welfare funds intended for SC and ST students, highlighting concerns over accountability and transparency in the distribution of educational assistance programmes.