In a major development in a case related to cheating of homebuyers and alleged misconduct by public servants, the Central Bureau of Investigation (CBI) has filed a chargesheet against M/s Manju J Homes India Ltd, its directors, and officers of State Bank of India (SBI).
The accused have been charged for their alleged role in a criminal conspiracy that caused financial loss to banks and innocent homebuyers. The case is related to a housing project in Ghaziabad, Uttar Pradesh.
The builder company and its directors, along with bank officials and other private persons, allegedly cheated homebuyers and investors by giving false promises and misleading information. They allegedly gained financial benefits through illegal and fraudulent methods.
What is the case about?
The bank customers purchased under-construction homes from builders and took loans from banks. As per the agreement, the builders had to pay the interest on the loans until the homes were constructed and handed over to the buyers. However, the builders neither completed the construction of the homes nor paid the loan interest. The banks then asked the customers to pay the interest on the loans, but the customers refused, and the matter reached the court.
The Supreme Court of India has ordered CBI to conduct investigation into the alleged scam by the builder and banks. People say banks colluded with builders and loans were sanctioned without proper due diligence and bank guidelines were violated.
CBI investigation Report
The investigation also found that some bank officials allegedly misused their official positions to help the builder company. According to the CBI, the officials violated banking rules and procedures, which gave undue financial benefits to the builder and caused losses to banks and homebuyers.
The chargesheet has been filed before the competent court under charges including criminal conspiracy, cheating, criminal breach of trust, forgery for cheating, and use of forged documents under the IPC. Charges under the Prevention of Corruption Act have also been included.
During the investigation, the CBI collected documentary and oral evidence which reportedly pointed to a larger conspiracy involving misuse of official positions, diversion and misuse of funds, and fraudulent activities against homebuyers.
The CBI is currently investigating 50 similar cases registered under the directions of the Supreme Court. These cases involve various builders and unidentified officials of financial institutions across the country in matters related to alleged cheating of homebuyers and diversion of funds.
Earlier, the CBI had already filed eight chargesheets in similar cases against several real estate companies and their directors, along with officers of certain banks and financial institutions. These companies include M/s Rudra Buildwell Constructions Pvt Ltd, M/s Dream Procon Pvt Ltd, M/s Jaypee Infratech Ltd, M/s AVJ Developers (India) Pvt Ltd, M/s Chandigarh Developers Pvt Ltd, M/s Shubhkamna Buildtech Pvt Ltd, M/s Sequel Buildcon Pvt Ltd, and M/s Logix City Developers Pvt Ltd.
