A major real estate fraud involving more than ₹200 crore has surfaced in Bengaluru, where hundreds of people searching for houses on lease were allegedly cheated by a private intermediary company promising rental support and investment returns.
Police said the case involves a company named Johns Asset, whose owner, Stephen John, is currently absconding.
Based on complaints from victims, Indiranagar Police Station has registered a case and launched a search operation to trace the accused.
Victims promised rental support and returns
According to investigators, the company allegedly targeted people struggling to find lease houses in Bengaluru. Customers were reportedly told that if they deposited their lease money with the company, it would arrange rental homes and pay monthly rent on their behalf.
Believing the promises, victims allegedly invested amounts ranging from ₹10 lakh to ₹75 lakh.
Police said the company initially paid rent for a few months to gain customer trust before suddenly stopping payments and avoiding communication.
Victims allege huge financial losses
One of the complainants, Gayathri, alleged that her family invested ₹37 lakh after being assured secure housing and monthly financial benefits.
She claimed the company later failed to pay rent to the house owner, creating pressure on the family to vacate the property.
Victims further alleged that when they demanded refunds, the company instead promised a four percent monthly interest return and convinced many to reinvest their money.
Police suspect Ponzi-style operation
Investigators suspect the company may have operated in a Ponzi scheme-like model, where funds collected from new investors were allegedly used to pay earlier customers.
Sources said Stephen John had previously been arrested by the Central Crime Branch in another cheating case but allegedly resumed operations under a different company name.
The company office has reportedly been shut down, while dozens of victims gathered at the police station demanding action and recovery of their investments.
Further investigation is under way.