A major alleged ₹41 crore property loan scam has surfaced in Vadodara, Gujarat, where police have arrested six individuals accused of obtaining home loans from several banks by using forged property documents.
The Vadodara Crime Branch has identified real estate agent Nishit Ashokchandra Panchal as the alleged mastermind. Investigators believe he has left India and travelled abroad.
Authorities are collecting his passport and travel details and have initiated the process of issuing a Lookout Circular.
Alleged Fraud Involved Bhayli Properties
According to the complaint filed by Kaushik Ghanshyambhai Patel, the alleged fraud began in August 2025.
The transactions reportedly involved flats belonging to:
- Dharati Medrick County
- Pacifica Lakeside Developers
- Properties situated in the Bhayli area of Vadodara
Investigators allege that the accused prepared forged sale deeds for flats owned by the complainant’s company without obtaining its knowledge or approval.
Forged Sale Deeds Allegedly Registered
Police allege that the accused used:
- Forged signatures
- Fake official seals
- Fabricated sale deeds
- False ownership records
The documents were allegedly registered at the Akota Sub-Registrar’s Office.
According to investigators, these forged documents were subsequently used to establish false ownership and obtain loans against the properties.
Loans Taken From Multiple Banks
Using the allegedly fabricated sale deeds, the accused reportedly secured home loans totalling nearly ₹41 crore from several banks.
The banks named in the investigation include:
- State Bank of India
- Canara Bank
- Union Bank of India
- Bank of Baroda
- Indian Bank
- Karnataka Bank
Police allege that charges were created over the properties without the actual owner company’s knowledge, resulting in substantial financial exposure and legal complications.
Six Accused Arrested
The Vadodara Crime Branch has arrested six individuals in connection with the alleged conspiracy.
Those arrested are:
- Maulik Bhaskarbhai Upadhyay
- Parth Arjunbhai Suthar
- Ankit Pankajbhai Patel
- Harsh Kaushikbhai Patel
- Chirag Jagdishbhai Tadvi
- Jigar Bhaskarbhai Joshi
The accused were produced before a court, which granted police custody for further questioning.
Alleged Mastermind Believed to Be Abroad
During the investigation, police discovered that Nishit Panchal had already left India.
Officials are:
- Collecting passport records
- Reviewing travel history
- Verifying flight details
- Preparing a Lookout Circular
- Coordinating with relevant agencies
Police suspect he travelled from Vadodara to Ahmedabad by road before flying to Dubai with family members.
Previous Property Fraud Case Also Under Review
Investigators said Nishit Panchal had earlier been named in another alleged property fraud case involving approximately ₹4.75 crore.
That case, registered on May 28, allegedly involved the unauthorised sale of flats belonging to a builder in the Akota area.
Police are now examining whether the two cases are connected and whether similar forged property transactions were carried out elsewhere.
Wider Network May Be Involved
Police believe the custodial interrogation of the arrested accused could reveal:
- Additional beneficiaries
- More forged sale deeds
- Other fraudulent loan accounts
- Involvement of intermediaries
- Possible links with bank or registration personnel
- Further affected properties
The investigation is also examining the movement of loan proceeds and the accounts into which the funds were transferred.
How Property Loan Fraud Works
Property loan fraud commonly involves:
- Forged ownership documents
- Fake sale deeds
- Impersonation of property owners
- Manipulated registration records
- Multiple loans on the same property
- Creation of unauthorised bank charges
Such frauds can remain undetected when lenders rely heavily on submitted documents without independently confirming ownership and title records.
Stronger Verification Needed
Banks and property buyers should independently verify:
- Title ownership
- Encumbrance certificates
- Registration records
- Seller identity
- Existing mortgage charges
- Original sale deeds
- Beneficial ownership details
Digital land record verification and direct confirmation with the sub-registrar can reduce the risk of fraudulent lending against disputed properties.
Conclusion
The alleged ₹41 crore property loan scam highlights the risks created by forged sale deeds, weak title verification and fraudulent loan processing.
Police are continuing to trace the alleged mastermind, examine the financial trail and identify all individuals connected with the suspected conspiracy.
All allegations remain subject to investigation and judicial proceedings.
Shunyatax Global Insight
Shunyatax Global says that property-backed lending requires independent title verification at every stage. Banks should not rely only on photocopies, broker-provided documents or registration receipts.
Lenders should conduct direct sub-registrar verification, digital encumbrance checks, physical property inspection, borrower identity validation and independent legal due diligence before sanctioning high-value property loans.