Hyderabad : What began as a route to easy bank loans has snowballed into allegations of a land registration racket in parts of Bhadradri Kothagudem district, with brokers accused of using govt, assigned and village common lands to secure loans from private banks while pocketing hefty commissions.
One such case was reported from Dammapeta, where a broker allegedly arranged the registration of assigned patta land along the Palvancha road and helped secure a bank loan of ₹10 lakh. He reportedly charged ₹18,000 for every ₹1 lakh sanctioned, earning ₹1.8 lakh from the transaction alone. The broker is also said to have collected ₹10,000 each from four other loan seekers.
The alleged irregularities have surfaced in several localities across Aswaraopeta and Dammapeta mandals, where brokers are said to have facilitated registration of lands that ordinarily cannot be transferred through legal channels. In some instances, borrowers reportedly ended up in disputes after brokers diverted sanctioned loan amounts into their own accounts instead of handing over the money to applicants. The issue reportedly figured in a meeting of local elders after objections were raised over the commissions being collected.
The transactions have also drawn attention in the agency belt, where land transfers between tribals and non-tribals are barred under law. A registration reportedly facilitated in Mulakalapalli and the subsequent sanctioning of a loan have fuelled suspicions about how such transactions are being processed.
In one instance, a broker allegedly promised to secure a ₹15 lakh loan by facilitating the registration of village common land. In some cases, the alleged arrangements have triggered disputes after brokers reportedly diverted sanctioned loan amounts into their own bank accounts. The same property was later registered in another person’s name for a second time, exposing what residents claim is a larger fraud.