Loans on govt land? Brokers accused of using illegal registrations to secure bank finance | Hyderabad News

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.The alleged transactions have also raised serious concerns about violations of land laws in agency areas, where transfers between tribals and non-tribals are prohibited.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.According to sources, the operation involves first recording properties at gram panchayat offices and then processing registrations through the sub-registrar’s office in Kothagudem. The transactions allegedly involve village common lands, govt lands, assigned patta lands, and parcels located in agency areas.How such properties are being registered and subsequently accepted as collateral by private banks remains unclear.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 issue reportedly figured in a meeting of local elders after objections were raised over the commissions being collected.When contacted, Dammapeta tahsildar D Kishore said he was unaware of how such registrations were being carried out through the Kothagudem sub-registrar’s office. He said the matter would be brought to the notice of higher authorities.Similar transactions have allegedly been facilitated in several parts of Aswaraopeta, including Nandamuri Nagar, Gurrala Cheruvu, Maruthi Nagar, Vaddera Bazaar, Koneti Veedhi, Shivayya Veedhi, Fire Colony, and Perayigudem. Brokers are accused of using village common lands and assigned lands to help applicants obtain loans from private banks.In some cases, the alleged arrangements have triggered disputes after brokers reportedly diverted sanctioned loan amounts into their own bank accounts. In one instance, a broker allegedly promised to secure a ₹15 lakh loan by facilitating the registration of village common land. The same property was later registered in another person’s name for a second time, exposing what residents claim is a larger fraud.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.With questions mounting over the legality of the registrations, residents have demanded a comprehensive investigation into all registrations processed through the offices concerned over the past two years to determine the scale of the alleged irregularities and identify those responsible.