A case of loan fraud has come to light in Bengaluru, where a non-existent property was used as collateral to secure a loan of Rs 70 lakh. The City Crime Branch has registered a First Information Report (FIR) in connection with the incident.
How the Fraud Was Carried Out
The accused, identified as a resident of Bengaluru, allegedly submitted fake property documents to a private finance company to obtain the loan. The property in question was found to be non-existent during a verification process initiated after the borrower defaulted on repayments.
The finance company approached the authorities after repeated attempts to contact the borrower failed. Subsequent investigations revealed that the property documents were fabricated, and no such asset existed at the mentioned location.
Legal Action Taken
Based on the complaint filed by the finance company, the City Crime Branch has registered an FIR under relevant sections of the Indian Penal Code, including cheating and forgery. The police have launched a search for the accused, who is currently absconding.
Officials stated that the case highlights the need for stricter verification processes in loan approvals, especially for high-value loans secured against property. The finance company is cooperating with the investigation.
The incident has raised concerns among lenders about the prevalence of such fraudulent activities. The police have urged citizens to be cautious and report any suspicious loan applications.
