Two Ex-Kia India Employees Accused Of Stealing Over 1,000 Engines In Factory Fraud Case

Two former employees of Kia India are under investigation for allegedly stealing over 1,000 car engines from the company’s manufacturing plant in Andhra Pradesh over a period of three years, according to a Reuters report. The duo is accused of colluding with scrap dealers and transporters in a coordinated effort to siphon off engines valued at approximately $2.3 million (around Rs 19 crore).

The suspected scam was uncovered after Kia conducted a stock reconciliation exercise in January 2025, followed by a deeper internal audit. The company subsequently lodged a police complaint in March, alleging that 940 engines were unaccounted for and suspected internal collusion.

An initial investigation by Andhra Pradesh police revealed that two former factory employees—Vinayagamoorthy Veluchamy, 37, the former head of the engine dispatch section, and Patan Saleem, 33, a former team leader—were involved in the theft. They allegedly manipulated gate passes and used forged invoices to transport the engines out of the plant, according to police documents reviewed by Reuters.

Investigators found that the accused worked with at least four other individuals, including transport coordinators and scrap dealers, to execute the thefts. The engines were reportedly sold to buyers as far as New Delhi, using trucks with falsified or fake registration numbers. Police noted that the operation involved “high-level preplanning” and “internal access manipulation.”

Veluchamy, who left Kia India in 2023, is currently in police custody and has applied for bail at the state High Court, denying any involvement in the alleged scam. Saleem, who was employed at the factory until 2025, is currently untraceable, with listed contact numbers found inactive.

The police seized nine mobile phones containing WhatsApp chats, forged invoices, and transport-related images, which they believe are key evidence in the case. According to the police, proceeds from the engine thefts were allegedly used to repay debts, purchase property, or reinvested into other ventures.

Police officials noted that corporate-level fraud of this scale is rare. The accused, if formally charged and convicted, could face up to 10 years or more in prison under applicable Indian laws. Kia India, in a statement to Reuters, said it discovered discrepancies during its enhanced inventory checks and has since strengthened its internal governance and monitoring systems.

(Source: Reuters)