The Udupi district police have uncovered a widespread fake vehicle insurance racket targeting school and college buses across the coastal belt. Two individuals, including a former employee of an insurance company, have been arrested for allegedly fabricating and circulating forged vehicle insurance policies to educational institutions.
Racket exposed after accident in Kundapura
The case first came to light after an accident on November 25, 2024, at Hunshemakki in Hombady–Mandady village, Kundapura taluk, where a school bus collided with an autorickshaw.
A case was registered at the Kota Police Station under Sections 281 and 125(b) of the Bharatiya Nyaya Sanhita (BNS).
During the verification of an insurance claim linked to a motor vehicle compensation case before the Kundapura Sessions Court, investigators discovered that the insurance policy submitted for the bus was fake. The fabricated document had been used to mislead both the police and the court.
Police launch probe after insurance firm complaint
Following a complaint filed by Nikhil G R, manager of Reliance General Insurance, on September 4, 2025, the police registered a new case under Sections 318(4), 336(2), 336(4), and 340(2) of the BNS.
Under the supervision of circle police inspector Gopi Krishna and police sub-inspector Praveen Kumar R, a special investigation team (SIT) was constituted to trace the culprits.
Two arrested for fabricating fake insurance policies
Acting on credible information, the police arrested Rakesh S (33), a resident of Sasthana in Brahmavar, on September 6. During interrogation, Rakesh revealed that he had conspired with Charan Babu Mesta, an SDO at Reliance General Insurance Company, to create and distribute fake insurance policies.
Their fraudulent activities extended across Kundapura, Kota, Brahmavar, Shiroor, and Bhatkal, where they sold forged insurance policies to several schools and colleges. Charan Babu Mesta was later arrested and remanded to police custody for further interrogation.
Modus operandi: Editing genuine PDFs to forge policies
Police investigation revealed that both accused had previously worked together at Reliance General Insurance. They retained old genuine policy documents in PDF format and used editing tools to alter critical details such as policy numbers, vehicle registration numbers, and insurance amounts.
These altered documents were then issued as genuine insurance policies to unsuspecting institutions, who paid regular premium amounts believing them to be authentic.
Extent of the fraud
Preliminary findings show that the duo jointly created 86 policies, out of which 29 were fake. Separately, Charan Mesta alone fabricated 17 fake policies out of the 111 he had issued, bringing the total number of forged school and college vehicle policies to 46 across Udupi and Uttara Kannada districts.
Police are now investigating whether more institutions were duped and if additional suspects were involved in the racket. Further arrests are likely as the investigation progresses.