FAKE HOME LOAN CASE – CBI COURT CONVICTS VIJAYA BANK OFFICIALS AND THE BUILDER AT BANGALORE


The CBI court has convicted 10 persons, including a city-based builder and three former senior officials of Vijaya Bank, in a fake home loan case, on Thursday.

 Builder KA Subramanya of SCT Builders and Developers, from Viman Nagar in Kaggadasapura, is the main accused in the case, and was found guilty of colluding with three bank officials – H Dinakar Shetty, former senior manager of HAL III Stage branch; K Ratnakar Shetty, former assistant manager of Vijayanagar branch; and PN Shivamurthy, assistant manager of HAL III Stage branch – to open fake savings accounts, and to create fake documents to sanction home loans to purchase residential apartments in one of Subramanya’s housing projects.

The anti-corruption branch of CBI was entrusted to probe the case in 2009, based on a complaint filed by the chief manager of Vijaya Bank’s HAL III Stage branch.

Subramanya and the bank officials opened 21 savings bank accounts in the name of employees of SCT builders and developers, in 2003. These proxy buyers were sanctioned loans from the bank but later Subramanya sold these flats to other buyers without even informing the bank.

This resulted in a loss of over Rs 1.81 crore (without interest) to the bank. The prosecution managed to successfully prove that the tainted bank officials were also part of the conspiracy as they sanctioned the loans on the bases of fake documents without any scrutiny.

The XLVII additional city civil & sessions judge and special judge for CBI cases, Bangalore Aswatha Narayana, sentenced the three tainted bank officials to five years’ imprisonment, and a fine of Rs 5 lakh.   The remaining seven were sentenced to five years’ imprisonment and imposed a penalty of Rs 10 lakh.

There are too many fake/bogus/misrepresented transactions in HOME LOANS.  Too many commercial establishments have availed or borrowed money in the name of HOME LOANS.  Many borrowers have leased out or rented out the premises for commercial purposes.  Home Loan borrowers have constructed commercial complexes with cheap interest rate home loans.

There is innumerable cases of false declaration, misrepresentation of facts, fake documents, irregularities, illegalities and TAX EVASION  in the HOME LOAN.

 

Resale Apartments and Resale sites – is it safe? Maja Talkies apartment stories!!!


There are many apartments which are for resale, financed by Banks and marketed on internet and through agents.

The buyers of properties are under MISCONCEPTION that the titles are good and there is no need to check the titles and buy it without proper and due diligent scrutiny.

Some financial institutions, learning upon the defaulting borrower, immediately initiates the recovery proceedings and in some cases, upon the information about the illegality or the irregularity or violation, both the lender and borrower, begin the MARKETING PROCESS through agents and internet.  In majority of the cases, the bank does not offer HOME LOAN.  The agent ( in connection with the bank ) locates another bank or financial institution to fund the purchase of such properties.  BE CAREFUL.

is not better to conduct a thorough enquiry into the titles and the compliance before the purchase of such properties?

In one case, in Koramangala, the seller borrowed money from a Bank and deliberately defaulted and the prime property was attached and put into auction.  A NRI contested the bid and won the bid.  He paid the bid amount to the bank and acquired the property.  Immediately upon the purchase, offered to sell the property, stating that the property was bought in the auction.  The buyers believed it and paid money at bought the property.

The true story is different.

The land or property in question was a land acquired by BDA long back and could not develop a portion of the property and was left as it is.  The land mafia, created fake documents in the name of ( old madiwala organisation Katha) and sold the property to one of the buyer, who borrowed the money from the bank, with an intention to cheat and deliberately became a defaulter.  The NRI, bought and sold the same property.

TODAY, AN HOUSING COMPLEX (APARTMENT) IS SEEN. 

REGISTRATION VALUE OR THE GUIDANCE VALUE OF THE PROPERTIES REGISTERED – TAX EVASION – PENALTIES – TAX EVADERS GOT RED HANDED – RBI -INCOME TAX DEPARTMENT – STAMPS AND REGISTRATION DEPARTMENT – STAMP DUTY EVASION – PENALTY – 10 TIMES THE TAXES EVADED


In a bid to reduce or evade the stamp duty at the time of registration, the buyers and the sellers of the properties, have not SHOWN  the real sale price or consideration in the registered sale deed, but 90% of the buyers have borrowed money or availed institutional finance under HOME LOAN scheme, have falsified or deliberately undervalued the properties during the REGISTRATION PROCESS.

The Reserve Bank of India, being the central bank, governing all the banks in India, has all the details about the SALE AGREEMENT,(based on the sale agreement, the housing loans are sanctioned by the banks) and the SALE DEED.  It is very easy to detect the discrepancy or the undervaluation.

STAMP DUTY evasion invites 10 times the penalty of the STAMP DUTY EVADED, while, misrepresenting or concealing the actual consideration will invite CHARGES under several ACTS.

The Income Tax department has detected many such illegal transactions and are investigating too many such cases across the country and it is reported that over 30% of such tax evasion, misrepresentation and tax evasion are all in properties across BANGALORE alone.

Await the Tax Sleuths at your door steps soon for those who have different values in the SALE AGREEMENT and registered the property for LESSER VALUE in the SALE DEED.

Home Loan affidavit- General Format


  DECLARATION CUM INDEMNITY BOND

AFFIDAVIT CUM UNDERTAKING 

We, (1) ______, W/o _______,  aged __ years, (2)  _________, S/o ______, aged __ years, all residing at _______ do hereby solemnly affirm and undertake as follows:-

We have availed  a Housing loan of Rs. ________/- for the purchase of the property and for the building construction from your Bank, The ______ Bank , _____Branch, purchased from____________ and registered it as document no.___ dated___________ in the office of the Sub-Registrar, _____________ City.

1.                                                                                             2.

We hereby undertake that we shall not violate the sanctioned / approved plan, that the construction shall be strictly in accordance with the sanctioned plan that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and that we shall be responsible for obtaining the completion certificate and the same shall be obtained and handed over to the Bank positively within __ months from the completion of the construction without fail or without seeking for extension.

We further agree to the terms of the Bank that on our failure to obtain the completion certificate as aforesaid, the Bank shall have the absolute power and authority to recall the entire loan with interest, costs and other usual bank charges and to proceed for recovery of the loan without any objection from our side. We confirm that that we shall be liable to discharge the aforesaid obligation.

1.                                                                                             2.

We further undertake that in the event of any loss caused to the Bank on account of our failure to discharge the aforesaid obligation we shall indemnify the bank for the loss sustained by the bank in full will make good the loss caused to the bank.

What is stated above is true to the best of our knowledge, information and belief.

1.                                                                                             2.

Deponents

Solemnly affirmed and signed before me at my office at ____ who are personally known to me on this __rd of _____.

 

DECLARATION CUM INDEMNITY BOND SIGNED BY THE HOME LOAN BORROWERS


HOME LOAN BORROWERS ARE UNAWARE OF THE FACTS THAT AT THE TIME OF AVAILING THE HOME LOAN EITHER FOR THE PURCHASE AND CONSTRUCTION OF THE HOUSE(COMPOSITE LOAN) OR FOR THE PURCHASE OF THE HOUSE OR APARTMENT, A DECLARATION CUM INDEMNITY BOND WILL BE SIGNED AS PER THE DIRECTIVES OF THE RESERVE BANK OF INDIA, WHICH GENERALLY CONTAINS THE FOLLOWING CLAUSE:

DECLARATION CUM INDEMNITY BOND EXECUTED BY THE BORROWER IN FAVOUR OF THE BANK

 Further I indemnify XXXHFL(BANK) from any losses, interests, claims or rights, financial or otherwise if any, arising out of non availability of documents, minor’s interest, litigation, non regularization of deviations in constructions etc and other acts of omission/commission in connection with the said    schedule property and construction /development as mentioned above and declare and assure that the Schedule property has been constructed as per sanctioned plan from XXXXX and if at any point of time, ever proved otherwise, the XXXHFL(BANK) may initiate action for the recovery of the loan.