Who owns the flat? Bengaluru DCP buys property from one bank, only to find it claimed by another bank; Shocking scam drama unfolds

A Deputy Commissioner of Police (DCP) in Bengaluru has filed a police complaint, claiming that he was cheated by a bank which sold him a flat already mortgaged to another financial institution. The officer, VC Gopala Reddy (DCP, City Armed Reserve - West), alleges that he was misled during an e-auction deal involving Rs 28 lakh.

Flat Purchased Through E-Auction, Then Seized by Another Bank

According to the complaint, Reddy bought a fourth-floor flat in Sri Shankara Meadows, Kaggalipura, through an e-auction by Jana Small Finance Bank on 24 July 2023. He paid Rs 28 lakh for the flat and received a sale agreement. However, the property was not yet registered in his name.

On 8 May 2025, Swarna Bharathi Sahakara Bank issued him a notice, claiming the flat was already mortgaged to them and that he was staying there illegally. The bank later seized the property.

Jana Bank Officials Failed to Disclose Key Information

Reddy said he approached Jana Bank officials, named as Rajesh, Babu Srijith, Umesh, and Ranjan, to ask why they didn’t inform him about the mortgage. However, he claimed the officials did not respond clearly.

He has accused both Jana Bank and Swarna Bharathi Sahakara Bank of hiding facts and cheating him. He also wrote to Jana Bank asking for his Rs 28 lakh to be returned, but got no response.

All Documents Were Verified Before Purchase

Reddy said he learnt about the flat through an advertisement and verified all documents, including the e-khata, before bidding. He even sought legal opinion. As no encumbrance was found, he believed the property was clear and proceeded with the purchase.

Case Registered Under BNS for Cheating and Fraud

Based on Reddy’s complaint, the Central Crime Branch (CCB) has registered a case under the Bharatiya Nyaya Sanhita (BNS):

• Section 316: Criminal breach of trust
• Section 318: Cheating

Police have named the four Jana Bank staff, Jana Small Finance Bank, and Swarna Bharathi Sahakara Bank in the case. An officer said the investigation will reveal who is responsible for the alleged fraud and for not disclosing the loan on the flat.

Inputs from TOI