Rs.126 crore Fraud in IDBI Bank, CBI Files FIR Against Supertech

A fraud of Rs.126 crore has been reported in IDBI Bank. The Central Bureau of Investigation has filed an FIR against Noida-based real estate developer Supertech, its promoter RK Arora and others for allegedly cheating IDBI Bank to the tune of ₹126.07 crore.

The company’s whole-time directors Sangita Arora, Mohit Arora, Parul Arora, Vikas Kansal, Pradeep Kumar, Anil Kumar Sharma, and Anil Kumar Jain have also been named in the FIR.

CBI conducted search operations in five locations linked to the accused persons. Searches were conducted at official and residential premises in Noida and Ghaziabad.

During the raids, CBI seized cash amounting to ₹28.5 lakh.

The case started following a complaint from IDBI Bank. The Bank said that the company and directors had conspired to misappropriate sanctioned loan funds through fraudulent means.

The Bank said that the company and its directors submitted forged documents to secure credit facilities under false pretenses.The loan account was subsequently declared a wilful default and categorised as fraudulent, allegedly resulting in wrongful losses totalling ₹126.07 crore to IDBI Bank Ltd..

Earlier Court Actions against Supertech

Earlier also, the Supreme Court of India had raised voice against the unholy nexus between banks and developers. The issue was that Banks were disbursing loans directly to builders whereas builders were not providing possession of flats. Due to this, the borrowers were forced to pay EMIs whereas they did not get possession of flats.

The Supreme Court in April had directed the CBI to register a preliminary inquiry into projects of realty major Supertech Limited in NCR.

A bench of Justices Surya Kant and N Kotiswar Singh took into account an affidavit filed by CBI and directed the UP, Haryana DGPs to give a list of DSPs, inspector, constables to the agency to constitute a special investigation team (SIT).

The top court further directed the CEOs/administrators of Greater Noida Authority, Noida Authority, secretary, Ministry of Housing and Urban Affairs, the Institute of Chartered Accountants of India and RBI to notify one nodal officer from among their senior-most officers within a week to extend necessary assistance to the SIT.

The court also said thousands of homebuyers were affected by the subvention scheme, where banks paid 60 to 70 per cent of the home loan amount to the builders without projects being completed within the stipulated time.The apex court had then ordered the CBI to submit a roadmap on how it planned to unravel the “builder-banks nexus” which duped thousands of homebuyers in the NCR and proposed to go into the root of the matter.

This shows that there is an urgent need to set accountability of builders if possession of flats is not provided on time.