Bengaluru DCP buys flat from bank, then another lender shows up to seize it. Here's what happened

A Bengaluru police officer, is facing a real estate issue after purchasing a flat that was later seized by another bank due to an undisclosed mortgage.

Updated on: Jul 12, 2025, 14:00:08 IST

By HT News Desk | Edited by Anagha Deshpande

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A senior police officer in Bengaluru has found himself at the centre of a real estate dispute after the flat he purchased through a bank auction was seized by another lender claiming a prior mortgage, Times of India reported.

Deputy Commissioner of Police (City Armed Reserve – West) has filed a complaint with the Central Crime Branch (CCB).

According to the report, Deputy Commissioner of Police (City Armed Reserve – West) VC Gopala Reddy has filed a complaint with the Central Crime Branch (CCB), alleging that Jana Small Finance Bank sold him a flat that was already mortgaged to another financial institution, Swarna Bharathi Sahakara Bank, without disclosing the lien.

According to the complaint, Reddy bought the fourth-floor flat in Sri Shankara Meadows at Kaggalipura via e-auction on July 24, 2023, paying ₹28 lakh. While Jana Bank executed the sale agreement, the flat was yet to be formally registered in his name, the report added.

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What happened next?

The situation took a turn on May 8 this year, when officials from Swarna Bharathi Sahakara Bank served Reddy a legal notice, claiming he was illegally occupying the property. The bank later seized the flat, citing an outstanding mortgage loan taken by the previous owner.

Reddy said he had verified key property documents, including the e-khata and encumbrance certificate, and even sought legal advice before finalising the purchase. He also wrote to Jana Bank seeking a refund of ₹28 lakh but reportedly received no response.

He has accused four staff members from Jana Bank, identified as Rajesh, Babu Srijith, Umesh, and Ranjan, of failing to disclose the property’s financial history and named Swarna Bharathi Sahakara Bank as a co-accused in the case.

Bengaluru police have registered a case under Sections 316 (criminal breach of trust) and 318 (cheating) of the Bharatiya Nyaya Sanhita (BNS). “Further investigation will reveal who committed the fraud and concealed the mortgage details,” a senior officer told The Times of India, which first reported the case.

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HT News Desk
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