Authorities investigate claims that pledged residential and commercial units were sold without bank approval in a suspected real estate fraud case

A real estate investigation has been launched in Ahmedabad after allegations surfaced that a builder firm sold flats and commercial properties that were already mortgaged against a bank loan of nearly ₹3 crore. Police are now examining whether the encumbered units were transferred to buyers without informing the lending institution or obtaining required approvals.

The case has raised concerns over financial irregularities in the local property market and possible misuse of secured assets.

Loan Default Triggers Discovery of Alleged Fraud

The dispute came to light after a complaint was filed at Navrangpura police station against directors of Keshav Narayan Buildcon LLP, the developer behind the Akshar Elysium project in Ahmedabad.

According to the complaint, the firm had taken a loan of around ₹3 crore from ICICI Home Finance by mortgaging several flats and commercial units as collateral.

While initial repayments were reportedly made on schedule, authorities said irregularities began surfacing after January 2025, when EMI payments became inconsistent and eventually stopped.

Following the default, the lender reviewed the loan account and discovered that multiple mortgaged properties had allegedly already been sold to third-party buyers.

Allegations of Sale Without Bank Consent

Investigators claim that the disputed units were transferred without obtaining a mandatory No Objection Certificate (NOC) from the financing institution, despite being pledged as security for the loan.

The complaint was filed by an employee of ICICI Home Finance’s CG Road office in Ahmedabad. It names company operators Ronak Sonani and Gordhan Gangani as key individuals under scrutiny for alleged financial misconduct and unauthorized property transactions.

Police are now mapping out how many units were sold while under mortgage and whether buyers were informed about the encumbrance status at the time of purchase.

Probe Expands to Financial and Documentation Records

Authorities are currently examining:

• Mortgage and loan agreements
• Property registration and transfer records
• Buyer documentation and sale deeds
• Bank repayment history
• Financial transaction trails

Investigators are also assessing whether intermediaries, including brokers or agents, played any role in facilitating the alleged unauthorized sales.

A key part of the inquiry is determining whether purchasers were aware that the flats and shops were already pledged as collateral to the bank.

Possible Wider Financial Misuse Under Investigation

Officials indicated that the case may extend beyond a simple loan default, suggesting potential concealment of encumbered assets and misuse of secured properties.

The probe is also exploring whether funds from property sales were diverted and whether additional stakeholders or financial institutions may have been affected by the transactions.

If confirmed, the allegations could lead to both criminal proceedings and multiple civil disputes involving ownership rights and recovery actions by lenders.

Growing Concerns in Real Estate Sector

The case has once again highlighted risks in India’s fast-moving real estate sector, particularly concerning the sale of mortgaged properties without lender approval and weak due diligence practices.

Experts say such cases often lead to prolonged legal disputes between buyers, builders, and financial institutions, especially when property status is not clearly disclosed at the time of sale.

Authorities are expected to continue gathering evidence as the investigation progresses.

Malkajgiri Cyber Crime Police have arrested six individuals in connection with multiple online fraud cases involving fake investment schemes, digital trading scams, and financial cybercrime operations spread across several states.

Officials said the accused were allegedly part of an organized interstate fraud network that used mule bank accounts, fake digital identities, and online communication platforms to deceive victims and move illegally obtained funds.

Police Crack Down on Multiple Cyber Fraud Cases

According to investigators, the arrests were made during probes into five separate cybercrime complaints registered under the Malkajgiri Commissionerate in Telangana. Authorities traced the suspects by analyzing banking transactions, mobile phone records, and digital payment trails connected to the fraudulent activities.

Police alleged that the accused helped facilitate online scams by managing bank accounts used to receive fraud money and coordinating communication with victims through messaging applications and digital platforms.

Investigators believe the network may have links to larger cybercrime syndicates operating across multiple regions.

Fake Investment Platforms Used to Trap Victims

Officials said several complaints involved fraudulent online investment and trading schemes that promised victims unusually high returns. Victims were reportedly persuaded to invest after being shown manipulated profit screenshots and fake trading dashboards designed to appear authentic.

According to police, once larger investments were made, victims either lost access to their accounts or were asked to pay additional fees under false claims such as taxes, verification charges, or withdrawal processing costs.

Cybercrime experts noted that such scams often rely on psychological pressure and fabricated success stories to encourage repeated payments.

Mule Bank Accounts Under Investigation

Authorities stated that some of the arrested individuals allegedly provided mule bank accounts used to collect and transfer fraud proceeds. Investigators are now examining transaction histories, seized mobile devices, and digital communication records to identify additional suspects and uncover the wider financial network behind the operation.

Police also suspect that fake SIM cards and temporary online identities were used to hide the identities of the main operators managing the scams.

Further investigations are underway to determine whether international connections or cryptocurrency channels were involved in moving the stolen funds.

Public Advised to Verify Online Investment Offers

Cybercrime officials have urged citizens to remain cautious while dealing with online investment opportunities, unknown trading applications, and unsolicited financial schemes circulating on social media platforms.

Authorities warned users against transferring money based on promises of guaranteed profits or unusually high returns without verifying the legitimacy of the platform or organization involved.

Police also encouraged victims of cyber fraud to immediately report incidents through official cybercrime helplines and government reporting portals to improve the chances of financial recovery and faster investigation.

Police in Uttar Pradesh’s Sonbhadra district have registered a case in an alleged multi-crore fraud involving village panchayat funds, where public money is suspected to have been siphoned off through OTP-based authorisation misuse and unauthorised digital access.

The case names eight individuals, including a panchayat official, two secretaries, a photocopy shop operator, and several private firm representatives, as investigators probe alleged cheating, forgery, and criminal conspiracy.

Case Origin Linked to Lodhi Gram Panchayat Account

The FIR relates to Lodhi village panchayat under the Robertsganj police station area. Officials confirmed that the case was registered following court directions after allegations of irregularities in financial transactions from the panchayat account.

According to the complaint, the system required joint digital authentication through a chairman-secretary dongle mechanism for approving payments. The complainant, appointed after the death of the elected village head, alleged that he was misled during the setup of banking credentials.

He stated that he was taken to a local photocopy shop under the pretext of activating a new digital dongle and updating account access.

OTP Sharing Allegations and Fund Diversion Claims

The complaint further alleges that OTPs were repeatedly sent to the complainant’s mobile number under the explanation that they were required for system activation. Believing the process to be legitimate, he reportedly shared the OTPs multiple times.

Following this, large sums were allegedly transferred from the panchayat account into multiple private bank accounts and several firms suspected to be linked to the accused individuals.

Investigators are examining claims that at least nine firms were involved in receiving diverted funds. Authorities are also probing whether these entities were legitimate businesses or shell companies created to route public money.

Digital Access Misuse and Expanded Probe

Officials suspect that even after OTP sharing stopped, alternative access methods may have been used to continue unauthorized transactions. There are also allegations that additional OTPs were obtained through email-based access by one of the officials involved.

The complainant further alleged physical intimidation after raising objections to the suspected financial irregularities, adding another layer of seriousness to the case.

Police have begun recording statements of all accused individuals while forensic teams examine digital logs, bank records, OTP trails, and communication data.

Investigation Focus on Fund Trail and Shell Entities

Authorities are now mapping the complete flow of transactions to determine the total amount allegedly siphoned from panchayat funds. Investigators are also verifying firm registrations and financial records to identify final beneficiaries of the diverted money.

Preliminary inputs suggest the possibility of layered fund transfers designed to obscure the origin of public funds, a pattern often seen in complex financial fraud cases.

Growing Concerns Over Digital Governance Risks

The case has highlighted vulnerabilities in the digital management of local government funds, particularly the risks associated with OTP-based authentication and shared access systems in rural financial administration.

Experts note that such incidents underscore the need for stronger safeguards, multi-layer verification systems, and tighter oversight of digital financial operations in panchayat governance structures.

Police have confirmed that the investigation is ongoing and further legal action may follow as the financial trail is fully reconstructed.