Two former Kia India workers are under investigation over accusations that they colluded with scrap dealers to steal 1,008 engines from the carmaker’s factory over three years, police investigation documents showed.

Though the engines were worth only $2.3 million, the police investigation noted the case had “widespread impact on industrial operations, stakeholder trust and employment security”, and raised concerns about inter-state crime networks.

Kia in March complained to police in the southern state of Andhra Pradesh that a review of internal records found engines sourced from its sister carmaker, Hyundai , were missing and it suspected a conspiracy between past and present employees.

An initial police investigation found two former Kia India factory workers - a team leader and a head of section in the engine dispatch section were involved in illegally transporting the engines from the factory using forged invoices and manipulated gate passes, according to an April 16 police document.

They worked with at least two other individuals who helped arrange transport, and two other scrap dealers who helped sell them to buyers as far away as the capital city New Delhi.

“The entire operation involved repeated illegal transactions, use of multiple trucks bearing manipulated or pseudo registration numbers,” Inspector K. Raghavan said in his investigation document dated April 16, seen by Reuters.

Raghavan declined to comment when contacted, citing confidentiality.

In a statement to Reuters, Kia India said it identified the discrepancies as it enhanced its inventory management processes last year. Kia India conducted an internal investigation, reported the case to police and was continuing to strengthen internal process governance and reinforce stringent monitoring systems, it added.

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‘Disappearance’ of engines

The former head of the engine dispatch section at Kia’s factory, Vinayagamoorthy Veluchamy, 37, is currently under arrest in custody, and has applied to the state High Court for bail, according to court papers seen by Reuters.

He denied any involvement in the alleged thefts, the papers showed. He left the company in 2023.