Chennai’s Central Crime Branch has detained 51‑year‑old Devendran, his 43‑year‑old wife Sasikala, and Repco Home Finance manager R.G. Harinath Karthik for a massive ₹21 crore mortgage fraud involving forged receipts and duplicate property documents.

  • Devendran and Sasikala removed original property documents
  • R.G. Harinath Karthik issued a fake repayment receipt
  • Total fraud amount: ₹21 crore

Chennai, August 26, 2026 – The Central Crime Branch (CCB) has taken into custody a married couple and a private housing‑finance manager for allegedly orchestrating a ₹21 crore mortgage fraud by withdrawing original property documents from the lender and pledging them with another bank.

Key Facts of the Scam

The arrested individuals are 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, manager of the Anna Nagar branch of Repco Home Finance Limited.

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How the Fraud Was Executed

In 2016, Sasikala and Devendran secured two mortgage loans totalling ₹3 crore from Repco Home Finance by submitting original documents for eight properties as collateral. While ₹2.26 crore remained outstanding, Karthik allegedly generated a counterfeit receipt indicating full repayment and cancelled the mortgage. The falsification surfaced during an internal audit.

The Duplicate Pledge

Armed with the original documents, the couple pledged the same assets to another private bank, extracting a fresh ₹21 crore loan. This double‑pledging scheme allowed them to obtain two separate loans against the same collateral.

Police Investigation and Related Cases

The CCB registered the case after a complaint filed by M. Vijayakumar, legal assistant manager of Repco Home Finance, with the Chennai Police Commissioner on July 8. Police also disclosed that the couple is implicated in two additional cheating cases amounting to ₹9.19 crore.

Why This Matters

BozokMedia analysis shows that such mortgage fraud undermines the credibility of financial institutions and poses heightened risk management challenges for lenders. The incident underscores the urgent need for stricter regulatory oversight and robust audit mechanisms.

"Mandating rigorous digital verification of loan documents can significantly curb repeat offenses in the housing finance sector," says financial‑crime expert Prof. Anjali Raj.
Did You Know?: Mortgage fraud cases in India rose by 35% between 2020‑2025, costing banks an estimated ₹500 crore annually.

Frequently Asked Questions

Q1: Have other banks suffered losses due to this scheme?
A: Investigations are ongoing, but preliminary reports suggest two major private lenders may have been affected.

Q2: Will this case trigger regulatory reforms?
A: Financial regulators are already recommending stricter digital documentation and verification protocols.