The Hindu : Karnataka / Bangalore News : 8 persons buy non-existent property, 2 arrested

Online edition of India's National Newspaper
Friday, Aug 31, 2007
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Karnataka

Karnataka - Bangalore

8 persons buy non-existent property, 2 arrested

Staff Reporter

BANGALORE: The Ulsoor Gate police arrested two of the 10 persons who had allegedly cheated several banks of Rs. 1.64 crore by producing fake property documents as collateral for loans.

Deputy Commissioner of Police (Central) B.N.S. Reddy told presspersons on Wednesday that investigations had revealed that some bank officials and legal experts had connived with the accused and efforts were on to trace them.

The police gave the names of the arrested as K. Govinda Reddy (66) of 3rd Stage, Banashankari, and I.S. Shivaswamy (40) of Hariharapura in Koppa taluk of Chikmagalur district. The police said Govinda Reddy, who owned a house in Kathriguppe, had created fake documents claiming ownership of a plot near his house. But in reality, the site did not exist.

Subsequently, Govinda Reddy sold the non-existent property to eight persons on different occasions. The buyers, who were reportedly aware of the fraud, borrowed loans from banks pledging the “property” they had purchased from Govinda Reddy. The people who got the loans were the major beneficiaries and they had paid Rs. 1 lakh or Rs. 2 lakh to Govinda Reddy.

Bank officials who found a loan borrowed by submitting fake documents, lodged a complaint with police.

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