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Maharashtra man fakes death, kills another to claim insurance payout: Police

A man from Maharashtra's Latur district allegedly faked his own death and murdered another person in a bid to claim an insurance payout, police said. Investigators revealed that mounting debts and financial stress drove the accused to execute the crime, which was uncovered after police grew suspicious of a charred body found inside a burnt car.

 Chavan had taken loans amounting to nearly Rs 97 lakh to purchase multiple flats in Mumbai and Pune
Chavan had taken loans amounting to nearly Rs 97 lakh to purchase multiple flats in Mumbai and Pune Credit:File
| Updated on: Dec 16, 2025 | 03:09 PM

New Delhi: A man from Maharashtra’s Latur district allegedly faked his own death and killed another person to claim a large insurance payout. The accused, a bank employee, is said to have devised a meticulously planned scheme to escape mounting debts.

Latur police traced Chavan’s location and arrested him with the help of his girlfriend, who allegedly tried to contact him, leading investigators to his whereabouts.

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Chavan was burdened with loans

Investigations revealed that Chavan was under severe financial stress. He had taken loans amounting to nearly Rs 97 lakh to purchase multiple flats in Mumbai and Pune. According to Superintendent of Police Amol Tambo, the accused was struggling to repay the loans, and the situation worsened due to additional expenses linked to both his wife and girlfriend, The Times of India reported.

“The thought of freeing himself from all these problems turned him into a cold-blooded murderer,” SP Tambo said.

What triggered suspicion

The case came to light after police received a call on Dial 112 around 12:30 am, reporting a car on fire on Vanavada Road. “Our staff and officers rushed to the spot and informed the fire department, which extinguished the blaze. A completely charred body was found inside the vehicle. Medical officers were called, and a post-mortem examination was conducted. Further investigation is underway,” an officer said.

Initially, Chavan’s family identified the charred body as his, based on a metal kada found on the hand. However, police later grew suspicious and began a deeper probe.

After being taken into custody, Chavan allegedly confessed to the crime. He told investigators that he had offered a lift to a drunken man named Govind Yadav. On the way, he bought chicken for Yadav, after which the man fell asleep in the car.

Chavan then drove to the isolated Vanavada road, dragged Yadav into the driver’s seat, fastened the seat belt, placed a sack over his body, poured petrol on him, and set the vehicle on fire.

'Do or die situation'

The accused fled first to Kolhapur and later to Vijaydurg in Sindhudurg district. However, his extramarital affair provided a crucial lead, ultimately resulting in his arrest.

Further, the station inspector said Chavan had contemplated either suicide or murder as part of a plan to clear his debts and fraudulently claim the insurance money.

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