Police have arrested two electric vehicle company owners in Bengaluru for allegedly cheating hundreds of people by promising electric two-wheelers at subsidised prices under the guise of a Prime Minister scheme.

The arrested individuals have been identified as Hanumantha Bilkar, owner of Bilkar Technologies in Ramaiah Layout, Nagasandra, and Rakesh, owner of Appke EV in Peenya.

Buyers allegedly lured with fake subsidy promise

According to police, the accused convinced customers that they could purchase electric scooters at heavily subsidised prices under a government scheme.

Deputy Commissioner of Police (North-West) DL Nagesh said two complaints were registered against the companies on February 11 and February 23 at Peenya and Bagalagunte police stations.

Investigators said the accused allegedly arranged bank loans in the buyers’ names and transferred the loan amounts directly to their companies.

The accused reportedly got loans sanctioned for nearly double the price of the vehicle and told buyers they only needed to pay the final three or four EMIs, while the companies would clear the remaining instalments.

Initially, the firms paid a few EMIs, but later stopped payments, leaving buyers to deal with repayment demands from banks and finance companies.

Victims say vehicles never delivered

One of the complainants, Smruthi (38) from Chokkasandra, told police that she visited the Appke showroom in November last year after being informed about the subsidised EV scheme.

She was allegedly told the scooter cost ₹70,000, but she only needed to pay ₹25,000 as a deposit, with the remaining amount covered through a bank loan that the company would repay.

However, despite paying the deposit, she did not receive the vehicle. Later, she discovered that a loan of around ₹1.4 lakh had already been taken in her name, with monthly EMIs being deducted from her account.

In another complaint, P. Ramesh (48) from Doddabidarakallu said he was asked to deposit ₹13,000 for a vehicle priced at ₹70,000. The accused allegedly took a ₹1 lakh loan in his name through an online loan platform but never delivered the vehicle.

Around 900 people reportedly affected

Police said the companies assembled electric scooters in Bengaluru using parts sourced from Delhi and sold them through local showrooms.

Investigators believe loans may have been taken in the names of around 900 people. While some customers received vehicles, the companies allegedly stopped paying EMIs as promised, leaving buyers burdened with the loans.

Police are continuing their investigation to identify more victims and determine the full scale of the alleged scam.