Two Arrested in Udupi for Property Tax Payment Fraud Involving Misuse of Bank Seal
Udupi: Udupi Town Police have apprehended two individuals in connection with a property tax fraud perpetrated at the Udupi City Municipal Council. The suspects, identified as Shantha, 43, residing in Moodu Alevoor, Nailapade, and Supesh, 25, a resident of Kasturba Nagar, were taken into custody on February 12, 2026.
The arrests followed a formal complaint lodged by Udupi Municipal Commissioner Mahantesh on February 12, outlining discrepancies discovered during the reconciliation of property tax payments. According to the complaint, property tax challans are generated through the e-receipt system at the municipal office, with payments intended for deposit into the Municipal Council’s account at Union Bank.
Anomalies were first detected on February 3, when staff members noted that a challan dated January 28, bearing the official seal of Union Bank, lacked a corresponding payment record in the bank’s registry for that date. This discrepancy prompted further scrutiny, revealing on February 4 that several challans with the Union Bank seal displayed challan numbers that had already been issued on January 28. The existence of duplicate challan numbers, each bearing bank seals with differing dates, raised strong suspicions of a deliberate scheme to misuse the Union Bank seal and divert property tax payments.
A formal case was subsequently registered at the Udupi Town Police Station, leading to the formation of a special investigation team. The accused were apprehended near Union Bank, Rajangana, Udupi city. Law enforcement officials report that the arrests were made based on the evidence gathered during the initial investigation.
During questioning, the accused provided voluntary statements that led to the seizure of the Union Bank seal allegedly used in the fraudulent activity, along with supporting documentation. Authorities have initiated further legal proceedings against the individuals who were arrested.
The investigation was conducted under the supervision of Superintendent of Police Hariram Shankar, IPS, and with the guidance of Additional SP Sudhakar Nayak and DYSP Belliappa. Udupi Town Police Station In-charge Inspector Mahesh Prasad P. led the operation, assisted by PSI Gangappa S. and staff members Surendra D., Santosh Rathod, Netravathi, Pavithra, Spoorthi, and others. The authorities have assured the public that a thorough investigation will be conducted to ascertain the full extent of the fraud and to recover any misappropriated funds.