CHENNAI: A fraudulent syndicate has been busted by the Central Crime Branch of Greater Chennai Police for using unclaimed or vacant land parcels to secure crores of rupees in fraudulent loans. Police revealed the gang identified properties that had remained inactive for over 25 years, exploiting ownership gaps to create counterfeit documents and impersonate property holders.
In one widely reported case, a property on Alwarpet spanning 3,662 square feet (with a 1,262-square-foot building) registered in the name of the original owner’s elderly mother was fraudulently mortgaged for a ₹3.03-crore loan using forged documents. The victim discovered a foreclosure notice on his door while applying for his own loan.
Plot Targets and Methodology
Police investigations uncovered that the gang’s modus operandi included deploying impersonators to claim legal heir status, forging powers of attorney and sale deeds. In the Alwarpet case, a woman impersonated the elderly owner, and a power of attorney was enacted under the name T.S. Rajasekar, purportedly authorised by her. The property was then transferred fraudulently to individuals from Kallakurichi, who mortgaged it in Salem for ₹3.03 crore, paying initial EMIs before ceasing repayments.
In another scam, the syndicate targeted a 9,000-square-foot property in Sholinganallur belonging to a couple, forging a death certificate to declare them deceased and deploying a fake claimant. A ₹5-crore loan was sanctioned against this plot before the fraud was identified.
Arrests and Wider Scope
Chennai Police have arrested several key suspects, including Kalaiselvi (60), Rajasekar (47), and Kumar (43), seizing incriminating material such as laptops, mobile phones, and forged records. Investigations revealed potential collusion by bank staff in processing loans based on counterfeit KYC details.
Acting on intelligence, officers also traced similar fraud patterns involving NRI property owners and additional suspect networks across Tamil Nadu. According to a senior officer, “We suspect at least ten people were involved across multiple fraudulent transactions.” The police are now working to identify and arrest the remaining accomplices and bank insiders involved.
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
Historic Patterns of Land Fraud in Chennai
Property fraud through forged documents and misuse of vacant plots has been a long-standing issue in South Chennai. Sub-registrar offices in these areas have historically seen the highest volume of fake registrations, predominantly involving forged Powers of Attorney, bogus legal heir certificates, and unverified identity records.
Recent years have seen coordinated efforts by Chennai Police’s anti-land-grabbing unit to arrest suspects engaged in similar cases, including one involving a ₹3.66 crore plot in Thirumullaivoyal, where individuals sold property not owned by them through forgery and impersonation.