Kia India has become a victim of a major industrial theft, and one of the largest cases of corporate fraud to date, as the police investigate the theft of a whopping 1,008 engines from the Kia factory in Andhra Pradesh. The engines are estimated to be worth close to $2.3 million (approx. ₹19 crore), and were allegedly stolen over a period of three years by two former employees, with assistance and collegiality with local scrap dealers, and using forged gate passes and documents.
How It Happened: Inside the Elaborate Scam
The fraud was identified during a normal stock reconciliation in January 2025. Initially, Kia identified 940 missing engines, and it quickly implemented an internal audit.
What started as an anomaly escalated into a police investigation. Footage from CCTV showed unauthorized movement of trucks offloading engines, leading to suspicion that someone internal may have assisted in the fraud.
The prime accused are Vinayagamoorthy Veluchamy (37), the former head of engine dispatch section, who is now in custody, and Patan Saleem (33), a former team leader. Saleem, who left Kia in 2025, is currently unlocated and his contact numbers are inoperative. Neither has been charged formally yet, but are both named in police FIR.
Evidence and Recovery
Inspector K. Raghavan's police report noted the operation was well constituted. They used trucks with fake registration plates to paddle the engines off the property. Police have seized nine mobile phones with chats, movement books, and photographs of the stolen goods.
The proceeds were allegedly used for living expenses, loan payments, house transactions and private businesses.
Kia's Response and Industry Impact
Kia India has confirmed the discovery was found in the course of an inventory system upgrade. The company has submitted a police complaint, put into place internal regularization, and stated that it will take steps to better processes and will create a more stringent project governance and monitoring systems.
This is a warning to the auto industry in India on how insider access and document forger can affect even the most secure supply chains. Depending on the seriousness of the conviction, the accused could face 10 years in prison as prescribed by Indian law.
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