Bengaluru DCP Falls Victim to Property Scam! Buys Flat in Bank Auction, Another Bank Claims Ownership
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A shocking property scam has come to light in Bengaluru, where a senior police officer claims he was cheated in a flat purchase deal. VC Gopala Reddy, the Deputy Commissioner of Police (DCP), City Armed Reserve – West, has filed a complaint alleging that he was misled by Jana bank during an e-auction and ended up buying a flat that was already under mortgage with another bank.
How the Bank Scam Happened with DCP?
According to the police complaint, DCP Gopala Reddy participated in an e-auction organized by Jana Small Finance Bank on 24 July 2023. He successfully bid for a flat on the fourth floor in Sri Shankara Meadows, Kaggalipura, and paid ₹28 lakh. The bank issued him a sale agreement, but the flat was not officially registered in his name.
Everything seemed legal and clear—Reddy had verified the flat’s documents, checked the e-khata, and even got a legal opinion before placing the bid. No loans or pending dues showed up during the checks, so he assumed the property was safe to buy.
Another Bank Claims Ownership
The situation took a dramatic turn on 8 May 2025, when Swarna Bharathi Sahakara Bank sent him a legal notice claiming that the same flat was already mortgaged to them. The notice accused Reddy of illegally staying in the property, and soon after, the bank seized the flat.
Reddy was shocked to learn that the flat he had legally purchased was already tied to another loan. He immediately approached the Jana Bank officials—named in the complaint as Rajesh, Babu Srijith, Umesh, and Ranjan—but claimed they did not give any clear answers regarding the mortgage status of the property.
Feeling cheated, DCP Reddy has now accused both banks—Jana Small Finance Bank and Swarna Bharathi Sahakara Bank—of hiding facts and committing fraud. He also sent a written request to Jana Bank, asking for a refund of his ₹28 lakh, but received no response.
Based on Reddy’s complaint, the Central Crime Branch (CCB) has registered a criminal case under the newly introduced Bharatiya Nyaya Sanhita (BNS):
- Section 316 – Criminal Breach of Trust
- Section 318 – Cheating
The FIR names the four bank officials from Jana Bank, Jana Small Finance Bank as an institution, and Swarna Bharathi Sahakara Bank. A senior officer from the investigation team said the probe will reveal who is legally responsible for the property fraud and why key details about the mortgage were not disclosed during the auction process.
