CBI files chargesheet in builder-bank nexus case

In a significant breakthrough in a case involving large-scale cheating of homebuyers and criminal misconduct by public servants, the Central Bureau of Investigation (CBI) 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, bank officers from Bank of India, ICICI Bank and UCO Bank and proxy homebuyers for their alleged involvement in a criminal conspiracy causing wrongful loss to financial institutions and innocent homebuyers.

Investigation conducted by the CBI has revealed that the accused builder company and its directors, in conspiracy with public servants and other private persons, allegedly induced homebuyers/investors through false assurances and fraudulent representations and obtained financial benefits by resorting to illegal and deceptive means.

It was further revealed during investigation that the accused public servants abused their official positions to facilitate the illegal acts of the builder in violation of established norms and procedures, thereby extending undue pecuniary advantage to the builder company and causing corresponding wrongful loss to the concerned financial institutions and the homebuyers.

It was also revealed during investigation that some of the accused private persons acted as proxy/fictitious home buyers and, in connivance with the builder, misrepresented facts before the financial institutions to obtain home loans.

Such acts resulted in undue pecuniary advantage to the builder company and causing corresponding wrongful loss to the financial institutions concerned.

These proxy homebuyers have also been charge-sheeted. M/s Kesar Builders Pvt Ltd is a sister concern of the main builder and used for routing the funds.

The chargesheet has been filed before the competent Court under relevant provisions of the Indian Penal Code and Prevention of Corruption Act for offences of criminal conspiracy, cheating, criminal breach of trust, forgery for the purpose of cheating, using forged documents as genuine, under IPC and criminal misconduct under Prevention of Corruption Act.

The investigation unearthed substantial documentary and oral evidence indicating the existence of a larger conspiracy involving misuse of official position, diversion/misutilisation of funds and fraudulent conduct towards homebuyers.

CBI is presently investigating 50 cases, registered in compliance to the directions of the Supreme Court (SC), against various builders across the country and unknown officials of various financial institutions.

Chargesheets in three cases have already been filed by the CBI against M/s Rudra Buildwell Constructions Pvt Ltd. and its Directors, M/s Dream Procon Pvt. Ltd and its directors and M/s Jaypee Infratech Ltd and its Directors for the offences of criminal conspiracy and cheating.