The operation is focused on suspected fraud involving BD Reside, a housing company owned by Barking and Dagenham Council that offers properties for sale, shared ownership, and rent at both market and affordable rates.
The council said the alleged fraud does not involve the allocation of council housing or the council’s housing allocations department.
Dominic Twomey, council leader, said: “The fact we have openly publicised this matter as much as we can, and contacted the City of London Police for guidance and support, shows our commitment to being open and transparent when serious concerns are found.
“We want this investigation to send a clear message that we simply won’t tolerate illegal activity.”
The arrests followed an intelligence-led investigation by the council’s counter fraud team, which then alerted police and requested further support.
The City of London Police have since opened a criminal investigation.
Cllr Twomey said: “Some of the comments I’ve seen from the public are calling for those involved to be named, which we obviously can’t do while the investigation is live.
“I’m hopeful that we’ll get the right result and will be able to talk more about the details once the case has concluded.
“We’re very grateful to the City of London Police for their strong partnership with the council and BD Reside throughout this process.
“As the investigation continues, I’d urge anyone who might have even the smallest piece of information to come forward – it could make all the difference.”
Details on how to submit information confidentially can be found at https://mipp.police.uk/operation/4801020125R39-PO1.
Further details about the case are being withheld while the investigation is ongoing.
Anyone with information related to Operation Chandrila is encouraged to contact police in confidence.
