Two arrests made after London police find evidence housing officers fraudulently let homes for personal financial gain

The police explained that many of these properties were sub-let by associates of those housing officers. Prospective tenants answered social media adverts and were provided contacts as to how they could obtain affordable housing within local areas in Barking and Dagenham.

As part of this process, prospective tenants paid “finders fees” and inflated rents. Some rents were paid in part to LBBD and some were not.

In 2023, an investigation by Inside Housing tracked how residents in Tower Hamlets were being targeted on social media and offered a chance to jump the housing waiting list in exchange for thousands of pounds in cash. There was no evidence this was true or that people involved were genuinely connected to the council.

Both LBBD and its housing company are working with the City of London Police’s Domestic Corruption Unit, the national lead police force for fraud, on the investigation.

Further information cannot be released while enquiries are ongoing, but anyone who might have information relating to Operation Chandrila is being encouraged to confidentially report it directly to the police. 

Dominic Twomey, leader of Barking and Dagenham Council, said: “Every day, our fraud team are behind the scenes looking into anything from corruption concerns to illegal sub-letting.

“Ultimately their job is to make sure public money is being spent in the way it should be, so I’m really pleased their proactive work has helped lead to today’s arrests.

“Huge thanks go to our colleagues at City of London Police for the work they’ve done so far working in collaboration with the council and B&D Reside.

“Now we wait to see what happens as the investigation unfolds, but I would encourage anyone who feels they have information that could help – no matter how small or irrelevant it may seem – to come forward.”

Details of this investigation come after seven council homes were seized by another council in east London after an investigation uncovered fraud ranging from illegal sub-letting to multiple ownership.