A major car rental fraud has come to light in Madhya Pradesh’s Indore, where police have arrested a man accused of renting luxury vehicles and illegally mortgaging them to raise funds. The Annapurna police station has recovered 24 high-end cars worth over ₹3 crore, including Audi, XUV and Thar models, while investigations suggest that more than 40 people may have been duped in the scheme.
The accused, identified as Sanjay Kalra, was taken into custody following multiple complaints from car owners who alleged that their vehicles were taken on rent and never returned. Police said the recovery was made from several locations based on information provided by the accused during questioning.
According to investigators, the accused would approach car owners under the pretext of running a legitimate car rental business. In the initial phase, he reportedly paid rent regularly for one to two months to gain the owners’ confidence. Subsequently, he stopped making payments and began avoiding contact, while the vehicles were allegedly pledged at different places to obtain large sums of money.
The case first came to light after a complainant from the Annapurna area approached the police, stating that his car had been rented out and that rental payments had abruptly stopped. When the owner demanded the return of the vehicle, the accused allegedly kept delaying on one pretext or another. After the complaint was registered, several similar victims came forward, pointing to a larger, organised fraud.
Police officials said preliminary investigation revealed that the accused targeted expensive and in-demand vehicles, particularly SUVs and premium cars, which could fetch higher amounts when mortgaged. The fraud was not limited to Indore alone, with victims reported from neighbouring districts as well.
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During interrogation, the accused allegedly admitted to using rented vehicles as collateral to raise funds, while concealing the true ownership of the cars from those accepting them as security. Investigators are now examining how the vehicles were pledged, whether forged documents were used, and if others were involved in facilitating the transactions.
Based on the accused’s disclosures, police teams conducted coordinated searches and recovered 24 luxury cars from various locations. The total market value of the seized vehicles has been estimated at over ₹3 crore, officials said. Authorities believe that more vehicles are yet to be recovered.
Police sources indicated that around 16 additional cars linked to the fraud are still untraced. Efforts are underway to identify their locations and bring them back to their rightful owners.
Officials said more than 40 applications and complaints have been received so far, and the number of victims could rise as the investigation progresses. Police are also scrutinising the financial trail to determine how much money was raised through the illegal pledging of vehicles and where the proceeds were diverted.
The case has raised concerns among car owners engaged in rental businesses, particularly those operating without formal agreements or verification mechanisms. Police have advised vehicle owners to exercise caution while renting out high-value assets and ensure proper documentation and background checks.
The accused has been remanded to custody, and further questioning is underway to identify possible accomplices and uncover the full extent of the network involved. Police said additional legal action would follow as more evidence is gathered.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
