In this article a fault detection scheme for broken rotor bar fault detection in three phase induction motor is presented. In the proposed scheme the induction motor has been transformed in the equivalent two phase (q−d) space, while the modeling of the faulty case has been also formulated. The model has been identified by the utilization of the Set Membership Identification (SMI) algorithm that has the merit of identifying both the parameters of the motor as also providing uncertainty bounds in both the healthy and the faulty cases. Based on the adopted methodology, the uncertainty bounds and the corresponding identified parameters of the induction motor is presented as 3D–ellipsoids, while a novel fast and efficient fault detection scheme has been proposed that is able to track iteratively the ellipsoid centers, the distance among centers, the intersection between the initial and a priori known converged states of the motor and the current ones, before or after the fault occurrence. Detailed analysis of the proposed approach and he fault detection strategy, as also extended simulation results are being presented that prove the efficiency of the suggested scheme.