CBI files charge sheet in builder-bank nexus case

The Central Bureau of Investigation (CBI) has filed a charge sheet against three companies, their directors, some officials of Bank of India, ICICI Bank and UCO Bank, and proxy homebuyers in an alleged builder-bank nexus case.

According to the CBI, among those mentioned in the charge sheet are AVJ Developers (India) Pvt. Ltd., AVJ Developers Pvt. Ltd., Kesar Builders Pvt. Ltd., and their directors. The agency alleged a conspiracy by public servants and other private persons to induce homebuyers and investors through false assurances and fraudulent representations.

“It was further revealed during investigation that the accused public servants abused their official position 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 said.

Some accused private persons acted as proxy/fictitious homebuyers and, in connivance with the builder, misrepresented facts before the financial institutions to get home loans. “Kesar Builders Pvt. Ltd. is a sister concern of the main builder and was used for routing the funds,” said the CBI.

“The investigation unearthed substantial documentary and oral evidence indicating the existence of a larger conspiracy involving misuse of official position, diversion/misuse of funds and fraudulent conduct towards homebuyers,” it said, adding that the CBI is currently investigating 50 such cases, registered following the Supreme Court directive.

Charge sheets in three cases have been filed so far against Rudra Buildwell Constructions Pvt. Ltd. and its directors, Dream Procon Pvt. Ltd. and its directors, and Jaypee Infratech Ltd. and its directors.