Fake Insurance Racket Targeting School Buses Busted in Udupi; Two Arrested
Udupi: A significant fraud involving the creation and distribution of counterfeit insurance policies for school and college buses has been uncovered in the Kundapur–Kota region of Udupi district, Karnataka. Law enforcement officials have apprehended two individuals accused of forging insurance documentation and defrauding numerous educational institutions of substantial sums.
Superintendent of Police Hariram Shanker addressed the media in a press conference, detailing the intricacies of the case. The investigation was initiated following a vehicular accident on November 25, 2024, in Hunsemakki, Hombadi–Mandadi village, Kundapur taluk. The incident involved a collision between a school bus (KA 20 AB 8968) and an autorickshaw, leading to the registration of a case at the Kota Police Station under Crime No. 236/2024, Sections 281 and 125(b) of the Bharatiya Nyaya Sanhita (BNS).
During subsequent Motor Vehicle Compensation (MVC) proceedings, Uday Shetty, the autorickshaw driver, filed a claim for Rs 15.95 lakh as compensation. However, a verification process conducted by Reliance General Insurance Company revealed that the insurance policy presented for the school bus was, in fact, fraudulent.
Prompted by this discovery, Nikhil G.R., Manager of Reliance General Insurance, submitted a formal complaint on September 4, 2025. Consequently, a new case (Crime No. 158/2025) was registered at the Kota Police Station under Sections 318(4), 336(2), 336(4), and 340(2) of the Bharatiya Nyaya Sanhita (BNS).
In response to the gravity of the situation, a special investigation team was constituted under the supervision of CPI Gopi Krishna (Brahmavar) and led by PSI Praveen Kumar of Kota Police Station.
The arrested individuals have been identified as:
Rakesh S. (33), a resident of Pandeshwar village, Brahmavar taluk, was apprehended on September 6, 2025.
Charan Babu Mesta, a former employee of Reliance General Insurance, was taken into custody on October 3, 2025.
During interrogation, both accused confessed to fabricating fake insurance policies for school and college buses operating in the areas of Kundapur, Kota, Brahmavar, Shirur, and Bhatkal. They allegedly deceived educational institutions into believing the authenticity of the forged documents.
Investigations revealed that the two accused collectively managed 86 policies, of which 29 were determined to be fraudulent. Furthermore, Charan Babu Mesta independently created 17 fake policies out of a total of 111. In total, 46 school and college vehicles were identified as possessing forged insurance documentation.
The modus operandi employed by the accused involved exploiting their prior employment with Reliance General Insurance. They retained old policy documents in PDF format and utilized PDF editing software to manipulate policy numbers, dates, vehicle details, and insurance amounts before issuing the altered documents to unsuspecting schools and colleges.
Law enforcement authorities suspect that the accused may have perpetrated similar fraudulent activities in other districts. The investigation remains active and is expected to expand as further evidence is gathered.
