New Delhi, May 6 (IANS) The Central Bureau of Investigation (CBI) has filed a chargesheet in a major homebuyers fraud case, unearthing an alleged nexus between builders, bank officials and proxy buyers that led to significant financial losses for both financial institutions and innocent homebuyers.

According to CBI, the chargesheet has been filed against M/s AVJ Developers (India) Pvt Ltd, M/s AVJ Developers Pvt Ltd, M/s Kesar Builders Pvt Ltd, their Directors, and certain bank officials associated with Bank of India, ICICI Bank and UCO Bank, along with several alleged proxy homebuyers.

The agency’s investigation revealed that the accused builder firms and their Directors, in collusion with public servants and private individuals, allegedly lured homebuyers and investors through false assurances and misleading representations. The accused are said to have secured financial gains through deceptive and illegal practices.

CBI officials further stated that certain bank officers abused their official positions to facilitate these irregularities, bypassing established banking norms and procedures. This, the agency said, resulted in undue pecuniary benefits to the builder companies while causing corresponding losses to financial institutions and genuine homebuyers.

The probe also uncovered the role of proxy or fictitious homebuyers, who allegedly acted in connivance with the builders. These individuals reportedly misrepresented facts before banks to obtain home loans, enabling the diversion of funds. Investigators noted that M/s Kesar Builders Pvt Ltd, a sister concern of the main builder group, was used as a conduit for routing these funds.

The chargesheet has been filed before a competent court under various provisions of the Indian Penal Code, including criminal conspiracy, cheating, criminal breach of trust and forgery, as well as under the Prevention of Corruption Act for criminal misconduct by public servants.

Officials said the investigation has yielded substantial documentary and oral evidence pointing to a larger conspiracy involving misuse of official positions, diversion of funds and fraudulent dealings with homebuyers.

The CBI is currently probing around 50 similar cases across the country, registered following directions of the Supreme Court of India. Chargesheets have already been filed in three other cases involving M/s Rudra Buildwell Constructions Pvt Ltd, M/s Dream Procon Pvt Ltd, and Jaypee Infratech Ltd and their Directors.

The agency said that further investigation in the present case is ongoing.

–IANS

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