The Central Bureau of Investigation has indicted two senior syndicate bank officials on alleged collusion with home builders on falsified documents when granting home loans.
The home buyers whose documents were used did not know how much credit was sanctioned or approved by the bank. They had just signed the papers.
The defendants were identified as then chief manager Sant Ram Barwal and senior manager Praveen Kumar, who were then stationed at a branch of the bank in Ghaziabad. The agency has appointed, among others, the President of the Vocational Education Foundation, Ramesh Lal Gupta, as well as the directors of Gyatri Hospitality and Realcon Private Limited.
The fraud affects 45 home loans granted to 37 borrowers to purchase apartments to be built in 2015-16 under the White House and Gayatri projects. The building owner, the Vocational Training Foundation, received approval for a period of five years in September 2012.
As it turned out, a review found that 23 instances of loan applications were not completed, while the loan recommendation and KYC / credit check were not conducted in any of the cases. The bank did not record copies of the tripartite agreement with the company. In some cases, income tax return records were not submitted. The total amount involved was nearly ₹ 10 crore.
During the investigation, some borrowers claimed that their profiles were used by the builder to obtain loans with a promised 6% commission. The complaining bank said the majority of borrowers could refuse liability as they neither invested their margin nor paid monthly interest.