New Delhi: The Central Bureau of Investigation (CBI) has uncovered an alleged nexus between builders, bank officials and proxy homebuyers in a major homebuyers fraud case involving large-scale cheating, misuse of funds and criminal conspiracy.
In a significant breakthrough, the agency 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, officials of Bank of India, ICICI Bank and UCO Bank, along with several proxy homebuyers.
According to the CBI, the accused were allegedly involved in a criminal conspiracy that caused wrongful losses to financial institutions as well as innocent homebuyers.
The investigation revealed that the builder companies and their directors, in connivance with public servants and private individuals, allegedly lured homebuyers and investors through false assurances and fraudulent representations. The builders are accused of securing financial benefits through deceptive and illegal means.
CBI further stated that some bank officials allegedly abused their official positions to facilitate illegal activities of the builders in violation of established banking norms and procedures. This allegedly resulted in undue financial advantage to the builder firms while causing heavy losses to banks and homebuyers.
The agency also found that certain private individuals acted as proxy or fictitious homebuyers and misrepresented facts before banks to obtain home loans fraudulently. These proxy buyers allegedly worked in collusion with the builders. Investigators said M/s Kesar Builders Pvt. Ltd., a sister concern of the main builder group, was allegedly used for routing funds.
The chargesheet has been filed under various provisions of the Indian Penal Code and the Prevention of Corruption Act for offences including criminal conspiracy, cheating, criminal breach of trust, forgery, use of forged documents and criminal misconduct.
CBI said the probe has uncovered substantial documentary and oral evidence pointing towards a larger conspiracy involving diversion and misuse of funds, abuse of official position and fraudulent conduct against homebuyers.
The agency also disclosed that it is currently investigating 50 similar cases registered following directions of the Supreme Court against different builders and unknown officials of financial institutions across the country.
CBI noted that chargesheets in three other builder fraud cases have already been filed against Rudra Buildwell Constructions Pvt. Ltd., Dream Procon Pvt. Ltd. and Jaypee Infratech Ltd. along with their directors.
The investigation in the present case is continuing.
