A fraudulent loan racket masquerading as a real estate finance consultancy was busted by the Special Zonal Crime Team (SZCT) of the Central Crime Station (CCS), Hyderabad.

Three men, including the mastermind, Jabbar Khan Munshi Khan, were arrested for cheating unsuspecting property owners under the guise of facilitating bank loans, and instead transferring ownership of the victims’ assets through bogus sale deeds, said an officer from the team.

Khan, 36, ran a real estate business under the name JK Financial Solutions in Somajiguda, while his associates Khureshi Javed Habibsab, 49, and Saddam Habibsab Kureshi, 34, were running a chicken shop.

Investigation revealed that Jabbar Khan’s modus operandi involved convincing people seeking loans that their credit scores were insufficient. He would then coax them into transferring property ownership to his associates, claiming it was necessary to secure the loan.

After acquiring the properties through sale deeds, Jabbar would secure mortgage loans using the new names, ensure the sanctioned amounts were credited to the original owner’s account, and swiftly withdraw the funds using pre-signed advance cheques collected from the victims.

Once the funds were siphoned off, Jabbar and his associates would default on EMI payments. With the loan unpaid, banks would proceed with auction notices, leaving the original owners legally dispossessed.