DCP duped in flat loan fraud

Deputy Commissioner of Police (CAR West Division), V.C. Gopal Reddy, has filed a complaint with the Central Crime Branch (CCB) after being allegedly cheated by employees of Jana Small Finance Bank in a fraudulent flat sale.

According to the complaint, Reddy had purchased a flat on the fourth floor of Shankara Meadows Apartment in Kaggallipura, Uttarahalli Hobli, through a public auction held by Jana Small Finance Bank in July 2023. He paid ₹28 lakh and had the flat registered in his name, where he was residing with his family. On May 8, 2025, employees of Swarna Bharathi Co-operative Bank arrived at the premises with a court order and seized the flat, claiming an unpaid loan was still pending against the property. Reddy later discovered that the loan was never disclosed to him during the auction process.

Despite repeated written inquiries, Jana Small Bank officials allegedly failed to respond. Reddy accused bank employees—Rajesh, Babu Sarjeet, and Umesh—of intentionally hiding critical information regarding the outstanding loan and misleading him during the purchase.

The CCB has registered an FIR against the mentioned bank employees and Swarna Bharathi Co-operative Bank, and an investigation is underway. Police sources confirmed that Reddy is seeking legal action against the parties involved for breach of trust, fraud, and willful concealment of facts. The incident has raised concerns about transparency in bank-led property auctions and the responsibilities of financial institutions in verifying property liabilities before sale.