Inside India’s Biggest Auto Scam: The ₹19 Crore Kia Engine Scandal

The420.in Staff
4 Min Read

In a stunning case of industrial sabotage and white-collar conspiracy, two former Kia India workers and a network of scrap dealers are under investigation for orchestrating the systematic theft of 1,008 car engines, worth $2.3 million (₹19 Crore), over a period of three years. Police call it one of the most meticulously planned corporate thefts in recent years, raising serious questions about internal access control, vendor integrity, and interstate crime networks.

The Missing Engines and a Tip-off from Hyundai

The alarm bells rang in early 2025 when Kia India, during an internal audit, discovered glaring discrepancies in its engine inventory. The investigation began after Kia’s sister company, Hyundai, flagged missing engines, parts that were logged as transferred but never arrived. A deeper probe at the Anantapur factory in Andhra Pradesh revealed something staggering: over 1,000 engines had quietly vanished between 2020 and 2025.

According to police documents, Kia first approached Andhra Pradesh police in March after discovering unauthorized vehicle entries on factory CCTV footage. The stock reconciliation in January had already hinted at the extent of the rot. Further investigation revealed a complex conspiracy, allegedly involving internal employees, forged dispatch documents, and scrap dealers who moved stolen engines across state borders.

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A Network of Insiders, Forged Invoices, and Long Hauls to Delhi

At the heart of the operation were two ex-employees: 37-year-old Vinayagamoorthy Veluchamy, former head of engine dispatch, and 33-year-old Patan Saleem, a former team leader. Veluchamy, now in police custody and seeking bail from the High Court, has denied involvement. Saleem, who left the company earlier this year, is reportedly absconding.

The two allegedly worked with at least four accomplices, two transport coordinators and two scrap dealers. Investigators say the engines were moved out using falsified invoices and manipulated gate passes, loaded onto trucks bearing fake or pseudo registration numbers, and shipped to buyers as far as New Delhi.

While the monetary value, $2.3 million (Rs. 19 crores), is significant, investigators say the real cost lies in the operational chaos and reputational damage. The suspects, if formally charged, could face over 10 years in prison under Indian laws for corporate theft, forgery, and criminal conspiracy. Charges may include falsification of documents, criminal breach of trust, and violation of IT and IPC provisions.

Kia India, in its statement, acknowledged the issue and said it has since overhauled its inventory controls and strengthened internal monitoring mechanisms. Nine mobile phones were recovered containing WhatsApp exchanges, transport photos, and suspicious invoice records. The police believe the stolen proceeds were used to settle debts, fund real estate purchases, or reinvested in side businesses.

About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.

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