The Hindu : Karnataka / Bangalore News : Six arrested for home loan fraud

Online edition of India's National Newspaper
Thursday, May 17, 2007
ePaper

Karnataka

Karnataka - Bangalore

Six arrested for home loan fraud

Staff Reporter

They created fake documents and borrowed Rs. 60 lakh

BANGALORE: The Jayanagar police have arrested six persons, including a woman, who had allegedly cheated a private financial institution of Rs. 60 lakh by obtaining loan on a house belonging to someone else.

Investigation has revealed that the accused had created fake documents and fraudulently registered H. Ravikala's house in their name, the police said.

Ravikala, a resident of 4th T Block, Jayanagar, went to the Jayanagar Sub-Registrar Office on May 3 to get encumbrance certificate of her property. But the records showed that she had sold the house to B.R. Bhaskar and B.R. Umesh for Rs. 43.8 lakh on July 17, 2006.

The photograph found in the registration records was of some other woman.

On May 4, Ravikala lodged a complaint with the Jayanagar police.

During investigation, the police found that Bhaskar (38) and Umesh (32), both brothers and loom owners from Avenue Road, had approached Citi Financial's Mahatma Gandhi Road branch and sought a loan on Ravikala's house, claiming that they were the owners of the property.

When the Citi Financial officials insisted on the "mother deed" of the property, the two claimed that they had lost the original document.

Complaint lodged

Subsequently, they made Vasantha (42) of Chamarajpet, who had impersonated Ravikala during the registration of the house, to lodge a complaint with the Chamarajpet police that she had lost the original deed while travelling by a BMTC bus.

The two brothers then submitted the complaint and acknowledgement copies to the financial company.

When the officials rejected the documents, the two issued an advertisement in a Kannada daily that they had lost the original deed.

After obtaining legal opinion, Citi Financial sanctioned a loan of Rs. 60 lakh to Bhaskar and Umesh, Assistant Commissioner of Police (Jayanagar) D. Narayanaswamy told The Hindu on Wednesday.

The two kept Rs. 29 lakh for themselves and paid Rs. 31 lakh to two of the accused, Muninarayanappa (45) of Subedarpalya and Arun (27) of J.C. Nagar.

They in turn paid some money to Vasantha and another accused H. Madhava Murthy (50) of Chamarajpet, the police said.

The police have found that Vasantha and Madhava Murthy had fraudulently registered two more properties in a similar manner in Vijayanagar Sub-Registrar Office.

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