EMI deducted for loan amount even before the money was released; borrower dies of heart attack

Mysore/Mysuru: Lakshmipuram Police have arrested three individuals, including the Manager of a private finance firm on charges of cheating a couple in connection with a housing loan. The accused — Yoganand, the Area Manager of Muthoot Housing Finance Company Limited on JLB Road in the city, along with Assistant Manager Basavaraju and Sales Officer Anand — were presented before a Judge and subsequently remanded to judicial custody.

The victims, M. Suresh, a  ‘D’ group staffer at the Department of Land Survey and Records in Nanjangud, and his wife Chandrakala, a teacher at a private school, had sought a loan from the finance firm to construct a house on Site No. 51 at Survey Number 190/2 in Giriyabhovipalya.

In her complaint, Chandrakala stated that initially, Assistant Manager Basavaraju, in discussions with the couple, had reportedly agreed to provide a loan ranging from Rs. 15 lakh to Rs. 20 lakh. In the first week of July 2023, they allegedly collected documents related to the couple’s house site. Subsequently, a loan amounting to Rs. 16,39,780 was sanctioned in the first week of August the same year. However, the finance firm officials informed the couple that an insurance cover of Rs. 1,33,585 for the loan applicant Suresh and the mortgage of the site in the firm’s name were necessary steps before releasing the loan amount. As part of this process, the officials allegedly obtained 12 blank cheques and secured the couple’s 60 to 70 signatures on blank papers.

Chandrakala narrated in her Police complaint that Basavaraju allegedly informed her and her husband that he (Basavaraju) had passed on the loan files to Anand. On Oct. 6, 2023, Anand executed the site mortgaging process at the Office of Sub-Registrar (East) in the city, assuring the couple that the loan amount would be credited to their account through RTGS.

However, to their shock, the amount was not deposited, but the first Equated Monthly Instalment (EMI) was deducted from their account.

Concerned about the situation and the delay in receiving the loan amount while the site was mortgaged, Suresh tragically passed away due to a heart attack on Oct. 13, 2023.

Subsequently, Chandrakala made numerous visits to the finance firm seeking the loan amount and the insurance policy in her husband’s name. Allegedly met with a cold response each time, she even brought her grievances before Yoganand, but received no assistance. Chandrakala told the Police in her complaint that she was harassed despite the finance company being at fault.

Amidst these difficulties, the finance firm deposited a cheque for the second EMI on Nov. 10, 2023. However, the cheque bounced due to insufficient funds in the account. Frustrated by the ordeal, Chandrakala lodged a complaint with Lakshmipuram Police Station on Jan. 18.

Acting on the complaint, Police Inspector Ravishankar led a team that arrested the three accused, who were subsequently presented before a Judge, who remanded them to judicial custody.