Bengaluru: A big house lease scam broke out in Bengaluru, with home seekers charging Urban Stanz (a private property company) with cheating them of huge amounts of money in the name of arranging for residential properties to be leased. The company used its mobile app and social media sites like Instagram to attract customers and got big advance payments.
The complaints suggest that the company assured prospective tenants that it would assist them in finding suitable properties in their selected neighborhoods. But after securing big deposits for the leased space, the customers were left with no support, and their money was not returned, they say.
FIR registered after complaints
The fraud came to light after victims approached the HSR Layout Police Station. On May 9, seven complainants filed formal complaints, saying they had collectively lost more than ₹1.09 crore.
Based on these complaints, police filed an FIR against the company owner Nithin Honnegowda and also staff members Madan Raj and Shivakumar. The investigation is currently underway.
Victims have heavy financial losses
According to the FIR, the complainants suffered substantial financial losses including:
- Khalid Ali Khan – ₹17 lakh.
- Barkat Unnisa – ₹27 lakh.
- Swapnil George – ₹22 lakh.
- Substain Raj – ₹19 lakh.
- Khushbu Begum – ₹11 lakh.
- Manjusha Jagadish – ₹13 lakh.
Police will be looking at the financial transactions and documents submitted by the complainants as part of the investigation.
How did the scam work?
As it was described in the complaints, the company had targeted people looking to lease houses and collected huge advance payments from them.
Victims claim that at first, the company paid rent to landlords on time for several months, in turn instilling confidence in tenants as well as property owners. But after that period, they claimed payments stopped.
Landlords then demanded rent directly from the tenants or asked them to vacate the property. But customers said when they approached the company to seek clarification or refunds, they were threatened, verbally abused, or denied repayment.
Hence, these allegations are in the police investigation and haven’t been tested in court.
Families left in financial distress
Many complainants said they arranged the lease amounts by taking bank loans, borrowing money from relatives and friends, or pledging family jewellery. Now that landlords are demanding rent or asking them to leave, many families say they are in great financial distress.
Police believe the total could be considerably larger if more victims come forward. And investigators think more complaints could emerge as the investigation continues.
Similar cases reported
The agencies said similar lease fraud complaints were also reported in recent months at Indiranagar and Avalahalli police stations, and there are concerns over fraudulent intermediaries in Bengaluru's rental housing market.
Advisory for home seekers
Police and property experts advise the public to be wary when signing lease agreements. Potential tenants should verify ownership documents, deal directly with property owners where they are able, ask for written agreements, and verify companies or agents before they pay the money.
Urban Stanz's accusations are currently under investigation. The accused will be able to respond through the legal process, and the outcome of the investigation will tell us the facts about the case.
