The Hindu : Karnataka / Bangalore News : Six arrested in housing loan fraud

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Friday, Dec 01, 2006
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Karnataka

Karnataka - Bangalore

Six arrested in housing loan fraud

Staff Reporter

BANGALORE: The Central Bureau of Investigation (CBI) officials on Tuesday arrested six persons on charge of committing housing loan fraud of Rs. 1.28 crore on the State Bank of India (SBI).

According to a CBI release, Wilfred Sequiera, former Branch Manager, Personal Banking Branch, SBI, Indiranagar, had sanctioned 10 housing loans in the name of different persons for the purchase of 10 flats being built by Uma Builders.

The builders had been permitted by the municipal authorities to build only six flats.

The CBI said that the bank officials had conspired with Uma Rao and Mallari Rao of Uma Builders and did not enter into a tri-partite agreement for creation of equitable mortgage on flats, leaving the loans unsecured.

Uma Rao and Mallari Rao did not submit the original title deeds to the SBI.

But they presented the title deeds to secure loans from Syndicate Bank, Bank of Baroda, Andhra Bank, Karnataka Bank and GIC Housing Finance Ltd., in the name of different borrowers.

The CBI arrested Mr. Sequiera, Uma Rao, Mallari Rao and Ramesh Rao on Monday.

On Tuesday, the CBI officials arrested P. Mohan, khata holder of the land on which the apartment was being built, and five borrowers — Praveen Kumar, P. Dinesh Upadya, N.R. Badrinarayana and B.S. Venkatesh.

The case is pending before the Additional City Civil Sessions and Special Judge for CBI cases.

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