In a shocking case of real estate fraud, a builder in Bengaluru has been formally charged by the police for allegedly selling the same apartment to multiple buyers and using the property to secure several loans. The Devanahalli police registered a First Information Report (FIR) on Tuesday, December 24, 2025, following a detailed complaint.
Police Action Based on Victim's Complaint
The legal action was initiated after Vinod Kumar filed a formal complaint on behalf of Phalaksh Shrishail Walishetty. The complaint outlined a sophisticated scheme where the accused builder is alleged to have executed a double-selling scam. According to the FIR, the builder not only promised and sold a single flat unit to different purchasers but also reportedly used the same property documents to raise multiple loans from financial institutions, thereby compounding the fraud.
Details of the Alleged Fraud Scheme
The core of the allegation rests on a deceptive practice known as 'double-selling,' a serious offence in the real estate sector. The builder is accused of entering into sale agreements with more than one buyer for the exact same residential unit. This creates a situation where multiple parties believe they have legitimate ownership rights to a single property, leading to financial loss and legal chaos.
Furthermore, the police are investigating the additional layer of fraud involving loans. It is alleged that the builder submitted the sale agreements and property papers to different banks or lenders to secure separate loans against the very same asset. This action, if proven, constitutes a severe financial crime that misleads lending institutions and undermines the integrity of property documentation.
Implications and Ongoing Investigation
This case highlights significant vulnerabilities in property transaction oversight and has sent ripples through Bengaluru's real estate community. For homebuyers, it underscores the critical importance of:
- Conducting thorough due diligence on builders and projects.
- Verifying title deeds and encumbrance certificates meticulously.
- Registering sale agreements promptly with the relevant authorities.
The Devanahalli police are now actively investigating the matter. They will be examining all related documents, transaction records, and bank details to unravel the full extent of the fraud. The builder, once formally identified and arrested, will face charges under relevant sections of the Indian Penal Code for cheating, criminal breach of trust, and forgery.
This incident serves as a stark reminder for both regulatory bodies and potential investors to enhance vigilance in the real estate market to prevent such multi-layered scams.
