Police in Maharashtra have arrested a Latur resident for allegedly murdering a man and setting his body on fire inside a car to stage his own death and fraudulently claim an insurance amount of ₹1 crore.

Superintendent of Police Amol Tambe said the accused, Ganesh Gopinath Chavan, planned the crime due to mounting financial distress and debts amounting to around ₹57 lakh.

Burnt car leads to deeper probe

The case came to light on Saturday when police were alerted about a car on fire along the Vanavada Pati–Vanavada road in Ausa taluk. A man was found dead inside the burnt vehicle, and an accidental death case was initially registered.

The car was traced to Baliram Gangadhar Rathod of Ausa Tanda and was reportedly being used by his brother-in-law, Chavan. Based on preliminary identification, the body was initially believed to be that of Chavan.

However, inconsistencies raised suspicion, prompting the Crime Branch to take over the investigation.

Accused found alive in Sindhudurg

Police soon discovered that Chavan was alive and in hiding in Sindhudurg district. He was traced and arrested within 24 hours of the incident.

During interrogation, Chavan allegedly confessed that he had taken a ₹1 crore term insurance policy three years ago and, overwhelmed by debt, decided to stage his death so that his family could receive the insurance amount and clear liabilities.

How the plan was executed

According to police, Chavan left home on the night of December 13, picked up Govind Kishan Yadav (50), who was reportedly intoxicated and seeking a lift, and later stopped along the highway.

Police said the victim fell asleep inside the car, after which Chavan allegedly moved him to the driver’s seat and set the vehicle on fire before fleeing the scene. The intention, investigators said, was to destroy evidence and make the death appear accidental.

Charges and investigation

Chavan has been booked on charges including murder, destruction of evidence and insurance fraud. Police said further investigation is under way to verify all aspects of the crime, including financial transactions and insurance details.

Senior officers said the case highlights how financial stress can escalate into extreme criminal acts and reiterated that attempts to misuse insurance mechanisms would be dealt with sternly under the law