Service apartment owners warned of property seizure over illegal activities

Service apartments in Hyderabad’s IT corridor have come under increased police scrutiny after multiple properties were allegedly used for gambling and prostitution, with owners now being warned that their properties could be seized if they knowingly facilitate illegal activities.

Three cases, two involving gambling and one prostitution, have recently been registered in Madhapur, the police said.

Cyberabad Police Commissioner M. Ramesh Reddy said the warning was intended to make property owners more cautious about whom they rent their premises to. “We have powers to get the house seized. It is risky for the owners,” he said. “No owner will allow anything illegal. This is to warn them and make them aware of these rules.”

The prostitution case surfaced after Madhapur Police and Kukatpally SOT raided White Castle Service Apartments in Ayyappa Society on September 27. Police alleged that the organiser was renting service apartments on a daily basis, bringing women to the premises and arranging customers.

“Service apartments are under our scanner,” Madhapur Police Inspector K.V. Subba Rao said. Owners have been asked to verify tenants and ascertain why their properties are being rented. If illegal activities are detected, owners could also be booked and the properties seized by the Revenue Department, he said.

Kukatpally Deputy Commissioner of Police (DCP) Ritiraj said gambling and cases under the Immoral Traffic (Prevention) Act have recently surfaced at service apartments. In several instances, owners live abroad and leave brokers to manage their properties and tenants. “In some cases, they rent them out knowing that there will be illegal activities,” the DCP said.

Police are now asking owners to establish the purpose of a tenant’s stay and obtain it in writing. “Doing so could also help owners establish that they were unaware of any subsequent misuse of the property,” the officer said. The Commissioner has instructed police to first warn owners and make them aware of the consequences.

K. Reddy, who owns three service apartments across west Hyderabad, said he asks prospective occupants for identity proof, the reason for renting the apartment and the number of people who would be staying.

A security deposit is also collected before check-in and refunded after the property is inspected at check-out, he said.