Fraud of Rs.2 crore in PNB by Builder, Loan taken against Property already gifted to someone else
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The Economic Offences Wing (EOW) has registered a case against a builder and his wife for allegedly obtaining a loan of Rs 2 crore from Punjab National Bank (PNB) by mortgaging commercial land that had already been gifted to their three daughters. The accused, Zeeshan Ali, managing director of Royal Heritage Builders Colonisers, and his wife, Nazneen Ali, allegedly failed to inform the bank about the transfer of ownership before using the property to secure an overdraft facility for the company.
The case concerns a 526.83-square-metre commercial plot in Bawadiakalan. The land originally belonged to Shadab Grih Nirman Cooperative Society. Zeeshan was the sole bidder in a tender issued by the society in 2007, and the plot was registered in his name on February 5, 2008. On July 10, 2013, he transferred the property to his three daughters through a hibanama, a gift deed under Muslim law. Two of the daughters were minors at the time.
Despite the transfer, Royal Heritage Builders Colonisers received an overdraft limit of Rs 2 crore from PNB on September 24, 2015, against the same property. According to the EOW investigation, the bank was not informed that ownership of the land had already been transferred to the daughters. Investigators also found that the legal search report marked the section concerning the interests of minors as “None”, which allegedly prevented the bank from getting a clear picture of the property’s ownership status. Zeeshan reportedly acknowledged the transfer in a letter to the bank in 2018.
The investigation also found that Zeeshan and Nazneen had obtained permission from a district court in February 2015 to sell another plot registered in the name of their minor daughter. The EOW considered this detail relevant to determining whether the couple was aware of the legal requirements relating to property owned by minors.
The loan account became a non-performing asset (NPA) in 2017 after the repayment obligations were not met. Before PNB issued a notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act on January 3, 2018, the daughters had filed a civil suit on October 4, 2017. They claimed ownership of the land and challenged the bank’s attempt to take possession of the property to recover the loan.
The daughters’ claim was subsequently dismissed by the civil court, and the dispute reached the Debt Recovery Appellate Tribunal (DRAT) in Allahabad. PNB argued that the civil suit had been filed in collusion to obstruct its recovery proceedings. On March 8, 2019, the Debt Recovery Tribunal (DRT) ruled in favour of the bank and issued a recovery certificate. The outstanding amount was reported to be Rs 2,07,86,807.48.
The EOW has now registered a case against Zeeshan and Nazneen based on its investigation into the alleged loan irregularities and property transfer. According to the agency, Zeeshan’s mother, who had served as a company director and guarantor, has died, so no action was taken against her. Zeeshan had also reportedly faced fraud-related cases in December of the previous year. The allegations against the couple will be subject to the legal process.
