CBI files charge sheet in builder-bank nexus case

The Central Bureau of Investigation (CBI) has filed a criminal complaint against three companies, their directors, some officials of Bank of India, ICICI Bank and UCO Bank and surrogate home buyers in a case of alleged builder-bank nexus.

According to the CBI, those mentioned in the charge sheet include AVJ Developers (India) Pvt. Ltd., AVJ Developers Pvt. Ltd., Kesar Builders Pvt. Ltd. and managers. The agency alleged a conspiracy by public officials and other private individuals to deceive home buyers and investors through false assurances and fraudulent representations.

“During the investigation, it was revealed that the accused public officials abused their official positions to facilitate the builder’s illegal actions in violation of established norms and procedures, thereby providing undue financial advantage to the construction company and causing undue harm to the relevant financial institutions and home buyers,” the statement said.

Some accused private individuals acted as proxy/fictitious home buyers and misrepresented facts before financial institutions to obtain home loans in connivance with the builder. “Kesar Builders Pvt. Ltd. is a sister company of the main builder and was used to divert funds,” the CBI said.

“The investigation has unearthed significant documentary and oral evidence indicating the existence of a larger conspiracy involving abuse of official position, diversion/misappropriation of funds and fraudulent behavior towards home buyers,” he said, adding that the CBI is currently investigating 50 such cases registered under the Supreme Court directive.

So far three cases have been filed against Rudra Buildwell Constructions Pvt. Ltd. and its directors Dream Procon Pvt. Ltd. and its directors and Jaypee Infratech Ltd. and managers.