CBI Registers Case Against Real Estate Promoter for Cheating SBI of Rs 5.22 Crore

Strategic Insights -

The Central Bureau of Investigation (CBI) has registered a case against a real estate promoter, his wife, a rice mill owner, and bank valuers for allegedly cheating State Bank of India (SBI) to obtain a housing loan of Rs 5.22 crore for a property that had no takers in the auction, even for Rs 3.46 crore. This is the fourth similar case the CBI has registered following the Madras High Court's direction to book loan fraud cases without delay. The accused, P Krishnan, and his wife approached SBI in 2018 for a housing term loan to purchase land measuring 9,641 sqft in Zamin Pallavaram and to construct a house on 5,335 sqft, projecting the value of the property to be Rs 7 crore. Valuers empanelled by the bank valued the property to be worth more than Rs 6 crore, which led to the bank sanctioning a loan of Rs 5.22 crore and disbursing Rs 4.5 crore to MRP Constructions for the construction. The couple defaulted on the loan, and the account was declared a non-performing asset (NPA) in 2021. The house was retrieved from the couple and was put up for auction with a base price of Rs 3.46 crore, but there were no takers.

Key Takeaways:

  • The CBI has registered a case against a real estate promoter, his wife, a rice mill owner, and bank valuers for cheating SBI of Rs 5.22 crore.
  • The accused projected the value of the property to be Rs 7 crore, while the actual guideline value of the land was around Rs 2,010 per sqft.
  • Valuers empanelled by SBI valued the property to be worth more than Rs 6 crore, leading to the bank sanctioning a loan of Rs 5.22 crore.
  • The couple defaulted on the loan, and the account was declared a non-performing asset (NPA) in 2021.
  • The house was retrieved from the couple and was put up for auction with a base price of Rs 3.46 crore, but there were no takers.
  • This is the fourth similar case the CBI has registered following the Madras High Court's direction to book loan fraud cases without delay.
  • SBI lodged a complaint before the CBI suspecting connivance of the promoter, the original landowner, and buyers, as well as the panelled valuers to cheat the bank.

Statistics:

  • The loan amount sanctioned by SBI was Rs 5.22 crore.
  • The actual guideline value of the land was around Rs 2,010 per sqft.
  • The base price of the auction was Rs 3.46 crore.
  • The total area of the land purchased by the accused is 9,641 sqft.
  • The area of the house constructed on the land is 5,335 sqft.
  • The account was declared a non-performing asset (NPA) in 2021.
  • The CBI has registered four similar cases following the Madras High Court's direction to book loan fraud cases without delay.

Sources:

  • Times News Network
  • Central Bureau of Investigation (CBI)
  • State Bank of India (SBI)
  • Madras High Court