Varun Jain, resident of Dashmesh Nagar on January 30 had lodged a complaint with the police that four armed men had allegedly snatched his Tata Indigo car from him at a gunpoint in the wee hours here.
During investigation, it came to light that Varun along with his friend Harjit Singh, alias Billu had allegedly planned to "create a drama", in order to get car insurance claim after lodging a false complaint of car snatching, police said.
After getting insurance claim, both had also planned to sell the car in Meerut's scrap market, he further said.
Police traced the car at a house in Deep Nagar here, he said.
A case has been registered against Varun and Harjit, police said.