Bengaluru EV Scam: Two Firms Accused of Duping Buyers with Fake PM Scheme Subsidies
In a shocking case of fraud, two electric vehicle companies in Bengaluru have been accused of cheating numerous individuals by offering electric two-wheelers at subsidized prices under the guise of a Prime Minister scheme. Police have arrested two persons in connection with the scam, which has left victims facing financial distress due to unpaid loans.
Arrests and Company Details
The arrested individuals have been identified as Hanumantha Bilkar, owner of Bilkar Technologies located in Ramaiah Layout, Nagasandra, and Rakesh, owner of Appke EV in Peenya. According to police reports, complaints were registered against both companies on February 11 and February 23 at the Peenya police station and Bagalagunte police station, respectively.
DCP (north-west) DL Nagesh stated that the accused sold two-wheelers by arranging loans in the buyers' names, which were credited directly to their companies. They allegedly secured loans for nearly double the actual price of the vehicles and assured buyers that they only needed to pay the last three to four EMIs, with the companies covering the remaining instalments.
Modus Operandi of the Fraud
Initially, the companies made the EMI payments as promised, but later ceased doing so, leaving buyers to confront demands from banks and finance firms. A senior police officer revealed that the companies procured parts of electric two-wheelers from Delhi, assembled them in Bengaluru, and sold them through their showrooms.
One victim, Smruthi, a 38-year-old resident of Chokkasandra, reported to Peenya police that she visited the Appke showroom in November last year. Staff members allegedly informed her that she could purchase an EV at a subsidized price under a PM scheme. They quoted the vehicle cost at Rs 70,000, requiring only a Rs 25,000 deposit, with the remaining amount to be arranged as a bank loan. The company promised to pay the EMIs and assured that once the loan was cleared, the subsidy amount would be credited to her account.
Smruthi paid the deposit but did not receive a receipt. Despite assurances of delivery within seven days, the vehicle never arrived. Later, she discovered that a loan of approximately Rs 1.4 lakh had been taken in her name, with Rs 5,463 being debited monthly from her account. When she approached Kotak Mahindra Bank, she alleged that staff failed to provide proper information about the loan.
Additional Victim Testimony
In another complaint, P Ramesh, a 48-year-old resident of Doddabidarakallu, told police that he approached the Bilkar showroom in December last year. The accused, including Hanumantha and Rakesh, offered him an EV at a subsidized price and asked for a Rs 13,000 deposit for a vehicle priced at Rs 70,000. They took a Rs 1 lakh loan in his name from an online loan app called Zype. The vehicle was not delivered, and Ramesh soon began receiving calls from the finance firm demanding EMI payments.
Scale of the Scam
A senior officer indicated that the accused had taken loans in the names of around 900 people. While vehicles were delivered to many of them, the companies allegedly stopped paying the EMIs as promised, exacerbating the financial burden on the victims. This case highlights vulnerabilities in consumer protection and loan processes, urging authorities to enhance scrutiny of such schemes.
