Man Arrested in Kozhikode for Fraudulently Transferring Property and Taking Loans from Two Banks

The Town Police have arrested a 50-year-old man named Karuvankandi Razak from Ulliyeri for illegally transferring ownership of a mortgaged property to his wife’s name and then taking out another loan using the same property documents.

What Happened?

In 2015, Razak took a home loan of ₹80 lakh from Punjab National Bank (PNB) in Kozhikode. He pledged his property as security for the loan. However, over the years, he stopped repaying the loan. As a result, the bank began legal proceedings to recover the money due to the long-term loan default.

While checking the legal records, bank authorities discovered that Razak had transferred the ownership of the mortgaged property to his wife’s name—without informing the bank. This is illegal because the property was already under a loan agreement and cannot be transferred or sold without the bank’s permission.

A Second Loan with the Same Property

After transferring the property into his wife’s name, Razak used the new registration documents to get another loan of ₹50 lakh from a different bank located in Atholi. This act of double-loaning on the same property without disclosing existing debts is considered a serious financial fraud.

Investigation and Arrest

The matter came to light during the legal recovery process initiated by PNB. The bank claimed that due to this fraudulent activity, it had suffered a loss of ₹1.36 crore.

Circle Inspector K. Jitheesh, who led the investigation, confirmed that Razak was arrested on June 20 after his role in obtaining the second loan using fraudulent documents was verified.

The case is a reminder for financial institutions to tighten checks on property-linked loans and ownership records, especially during loan defaults.