The investigation into the builder-bank nexus in the homebuyer fraud case is ongoing. With respect to this, the Central Bureau of Investigation (CBI) has filed a chargesheet against M/s AVJ Developers (India) Pvt. Ltd., M/s AVJ Developers Pvt. Ltd., M/s Kesar Builders Pvt. Ltd., their Directors, bank officers from Bank of India, ICICI Bank and UCO Bank and proxy homebuyers for their alleged involvement in a criminal conspiracy causing wrongful loss to financial institutions and innocent homebuyers.
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This is a very serious financial fraud case. As per reports, Banks gave home loans to customers to buy homes from builders. The houses were under construction, and during this period, the builder had agreed to pay the interest on the loan to the bank. But the builders neither paid the interest on the loan nor gave possession of the property to customers. Banks started forcing customers to repay the loan, but the customers refused to repay the loan, and the case was filed in the Supreme Court.
Customers said that Banks have colluded with builders and cheated customers. Thus, the Supreme Court ordered CBI to investigate the issue.
CBI is presently investigating 50 cases, registered in compliance to the directions of the Hon’ble Supreme Court (SC), against various builders across the country and unknown officials of various financial institutions. Chargesheets in 3 cases have already been filed by the CBI against M/s Rudra Buildwell Constructions Pvt. Ltd. and its Directors, M/s Dream Procon Pvt. Ltd. and its Directors and M/s Jaypee Infratech Ltd. and its Directors for the offences of criminal conspiracy and cheating.
Investigation by CBI
An investigation conducted by the CBI has revealed that the accused builder company and its Directors, in conspiracy with public servants and other private persons, allegedly induced homebuyers/investors through false assurances and fraudulent representations, and obtained financial benefits by resorting to illegal and deceptive means.
It was further revealed during the investigation that the accused public servants abused their official position to facilitate the builder’s illegal acts, thereby extending an undue pecuniary advantage to the builder company and causing corresponding wrongful loss to the concerned financial institutions and the homebuyers.
It was also revealed during investigation that some of the accused private persons acted as proxy/fictitious home buyers and, in connivance with the builder, misrepresented facts before the financial institutions to obtain home loans. Such acts resulted in undue pecuniary advantage to the builder company and causing corresponding wrongful loss to the financial institutions concerned. These proxy homebuyers have also been charge-sheeted. M/s Kesar Builders Pvt. Ltd. is a sister concern of the main builder and used for routing the funds.
The chargesheet has been filed before the competent Court under relevant provisions of the Indian Penal Code and Prevention of Corruption Act for offences of criminal conspiracy, cheating, criminal breach of trust, forgery for the purpose of cheating, using forged documents as genuine, under IPC and criminal misconduct under Prevention of Corruption Act.
The investigation unearthed substantial documentary and oral evidence indicating the existence of a larger conspiracy involving misuse of official position, diversion/misutilization of funds and fraudulent conduct towards homebuyers.
