Chennai: The Central Crime Branch (CCB) has arrested a couple and a manager of a private housing finance company in an alleged ₹21 crore mortgage fraud case. The couple allegedly obtained the original documents of eight properties that had been deposited as collateral for a mortgage loan and later pledged the same properties with another private bank to secure a ₹21 crore loan.
The arrested accused have been identified as 51-year-old Devendran and his 43-year-old wife Sasikala, both residents of Anna Nagar, and 51-year-old R.G. Harinath Karthik of Perungudi. Karthik was working as the manager of the Anna Nagar branch of Repco Home Finance Limited. Investigators are examining the alleged role of all three in the fraud.
Algoritha Security Launches ‘Make in India’ Cyber Lab for Educational Institutions
According to the investigation, Devendran and Sasikala had obtained two mortgage loans totalling around ₹3 crore from Repco Home Finance in 2016. They had submitted the original documents of eight properties as collateral for the loans. Despite the passage of time, approximately ₹2.26 crore remained outstanding.
Police allege that Karthik subsequently issued a fake receipt showing that the entire loan amount had been repaid. Based on the purportedly fabricated receipt, the mortgage was cancelled and the original documents of all eight properties were returned to the couple. Company records, however, allegedly showed that a substantial portion of the loan was still outstanding.
The alleged irregularity came to light during a routine audit conducted by the housing finance company. Senior officials reportedly detected discrepancies between the loan records and the status of the property documents. A subsequent internal examination indicated that documents that were supposed to remain with the lender had allegedly been returned to the couple.
After obtaining the original documents, the couple allegedly pledged the same properties with another private bank. Using the properties as security, they secured a fresh loan of around ₹21 crore. Investigators are now examining what information was provided to the second lender regarding the properties and whether the existing mortgage and outstanding liability were disclosed.
The case was initiated following a complaint by M. Vijayakumar, legal assistant manager of Repco Home Finance. He approached the Chennai Police Commissioner on July 8, alleging irregularities involving the property documents and the cancellation of the mortgage. The complaint also highlighted the alleged use of a fraudulent receipt to show that the earlier loans had been fully settled.
Following the complaint, the CCB conducted an investigation and registered a case before arresting the three accused. Investigators are examining the documents allegedly used in the transaction, loan records and related banking transactions. They are also looking into how the mortgage was cancelled and how the original property documents were released despite the outstanding loan amount.
The investigation is also examining whether other individuals were involved in the alleged fraud. Investigators are expected to establish the sequence of events surrounding the preparation of the purported fake receipt, cancellation of the mortgage, release of the original documents and subsequent pledging of the properties with another lender.
Police said Devendran and Sasikala are also allegedly involved in two other cheating cases involving approximately ₹9.19 crore. Investigators are examining whether these cases have any connection with the ₹21 crore mortgage fraud and whether a similar method was used in the other transactions.
The case highlights the financial and legal risks associated with fraudulent manipulation of property documents and loan records. It also raises questions about internal controls governing the release of original collateral documents and cancellation of mortgages. Investigators are now focusing on establishing how the documents were released, how the second loan was sanctioned and the complete financial trail of the transactions.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
