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Synopsis

The Madras High Court recently cautioned people against the growing incidence of property fraud in Chennai. Justice A.D. Jagadish Chandira highlighted the deceptive tactics of middlemen who lease valuable properties only to unlawfully sell or mortgage them, duping both property owners and unsuspecting buyers.

Court noted that there appeared no proper awareness among the common people with regard to this kind of offence. Therefore, the single judge bench suo motu impleaded the Director General of Police, Tamil Nadu State Police to prevent this type of offence.

"It is high time that the public at large should be made aware of the modus operandi of the offence and the Government should make wide campaigns in all media to prevent the similar nature of offence in future," court underscored.

The development took place in a petition filed by a victimized complainant seeking cancellation of bail granted by the high court to an accused of offences punishable under Sections 294(b), 448, 420, 506(2) IPC in a 2022 case. The petitioner contended that the accused had misrepresented before the high court to get bail in the matter.

The petitioner, K. Kanagaraj, alleged that the accused approached him, claiming interest in leasing his house. Trusting the accused's words, the petitioner entrusted the house's possession to him. However, the accused, without the petitioner's authorization, subsequently mortgaged the house to third parties.

In his bail plea, the accused had asserted his identity as a legitimate businessman before the high court and contended that his family owned multiple landed properties. He had further explained that financial disputes had arisen due to mismanagement in his business and the tenants who leased his premises had failed to pay rent.

During the bail proceedings, close relatives of the accused had also provided undertakings to settle the dispute with the petitioner. However, no subsequent efforts were made to resolve the matter.

On a previous date, the high court had instructed the Government Advocate (Criminal Side) to investigate the matter and provide statistics on similar cases. The Government Advocate submitted a status report on February 9, 2024, in compliance with the court's direction.

The report focused on the jurisdiction of the Greater Chennai Police, Avadi Commissionerate, and Tambaram Commissionerate. In Chennai, there were 40 pending cases affecting 67 victims, with a total sum exceeding Rs. 7 crores. Tambaram reported 9 cases involving 342 victims and over Rs. 13 crores. Avadi Commissionerate had 4 cases, impacting 20 victims, with more than Rs. 2 crores at stake.

Additionally, the Economic Offences Wing registered 4 cases affecting 1020 victims and involving over Rs. 41 crores. Cumulatively, these cases amounted to a staggering total of over Rs. 65 crores, precisely Rs. 65,58,85,069. Notably, these cases lingered unresolved since 2013 without reaching a conclusion.

Taking note of the report, court said that it drew parallels to past cases where fraudsters would acquire cars under rental agreements with owners. These cars would then be sold or transferred to third parties in distant locations for profit, leaving the owners stranded.

Therefore, while issuing the above mentioned directions, court posted the matter in the second week of June 2024 for further orders.