'The biggest scam in Bengaluru...': Investment advisor calls out city's rental deposit trap

You move out. The flat looks spotless. But when it’s time for the landlord to return your hefty security deposit, you get a fraction of it back, if at all. 

No photos of damage. No receipts. Just vague claims. And if you’ve rented in Bengaluru, this may sound all too familiar.

Investment advisor AK Mandhan has lived in 10 apartments across the city and says this “scam” plays out every single time. 

“The biggest scam in #Bangalore is when you are leaving an apartment and the owner sends you a fraction of the security deposit claiming ‘damage’ or something despite no evidence,” he wrote on X.

His post echoes a growing frustration among tenants in Bengaluru, where landlords often demand massive deposits—six to nine months of rent, sometimes even 12. That’s ₹3–5 lakh locked up per tenant. And when it’s time to move out, many renters find themselves shortchanged.

This isn’t an isolated case. When entrepreneur Varun Mayya posted about a similar experience, the response was overwhelming—over a million views and hundreds of horror stories from tenants who faced arbitrary deductions and delayed returns.

Despite clear rules under the Karnataka Rent Control Act—which mandates that landlords return deposits within 30 days and furnish receipts for any deductions—enforcement remains poor. The Model Tenancy Act, which limits residential deposits to two months’ rent, has yet to be fully adopted in Karnataka.

Among the most common grievances:

• Deductions without proof
• Delays in returning funds
• Landlords refusing to explain or justify charges

Tenants seeking redress can pursue legal options—sending a formal notice, filing a civil suit, or in extreme cases, approaching the Rent Control Tribunal. But legal success often hinges on one thing: a registered rental agreement.

To avoid falling into this trap, advisors recommend photographing the home’s condition, retaining all receipts, and being meticulous about the agreement’s terms. Some tenants have even resorted to handing over the apartment directly to the next occupant to recover their dues.