Serial home loan fraudster ran out of luck, caught by the police

Powai police had a break through the housing loan fraud by arresting one Pankaj Jani on the complaints of a leading bank. Last week one of the leading banks filed a complaint with the police that the documents submitted by some applicants were forged.

The police told that Jani, who is a part of a wider racket, had allegedly taken housing loans of Rs 40 lakh and Rs 49 lakh loan from ICICI Bank in April this year. However Jani, luck could not favor him this time when he attempted to get loans of Rs 50 lakh and Rs 41 lakh from HDFC Bank and thus landed him in the police net.

The police on investigation found that Jani had applied for housing loan using different names, but the photographs he submitted were of his own. Whereas the applications submitted were in the name of Birendra Sadhu Shetty and Santosh Mhatre.

Intriguingly, the police found a photograph of another person having the similar name to the one of the names mentioned on the application, Birendra Sadhu Shetty. Moreover the documents submitted were also similar to those Jani had provided.

There were seven housing loan applications involved in the racket -five with ICICI Bank in Ghatkopar and two with HDFC Bank in Andheri. Jani started filing the applications six months ago. The police apprehended three applications of Rs 54 lakh, Rs 60 lakh and Rs 24 lakh, respectively, which were pending with ICICI Bank. They also confirmed that Jani had used fake names such as Birendra Sadhu Shetty and Santosh Mhatre in the applications. Another application was made in the name of one Anand Chandshieve.

Explaining the technique, senior inspector Rajdoot Rupwate said, "The money was being used to pay EMIs for the two loans that had already been sanctioned. If they hadn't done so, it could have raised the suspicion of the bank authorities, especially while clearing the other applications. Jani had sought the loans through direct sales agents."

The fraud came to light when a verifying officer with HDFC Bank, Kiran Karnik, found that the Jani had submitted fake documents. To cross check he then dialed the number given against Shetty's name, but the call was attended by a man named Shabbir Patel. Thereafter he lodged a complaint with the Powai police.

"The bank officials, along with the police, laid a trap for Jani and caught him while he had gone to collect the loan cheques," said Rupwate. "Jani revealed that he carried out the fraud after receiving instructions from the kingpin, Sahil alias Sohil alias Abhay Singh alias Rajesh alias Vijay Saksena alias Ajay Saksena. He has never met or seen Saksena ; the others involved in the racket, too, haven't met one another."

Further giving out details about the racket, sub-inspector Keshavkumar Kasar said, "Jani was assigned to get hold of people seeking loans. Their signatures were then taken on loan application forms. These people had no idea that the documents would be misused."

In this connection three other persons-Anil Shelar, Chandar Sharma and Sanjay alias Ajit have been arrested as well. Their documents were used to get the loans. The property for which the loans were sought was in Karve village, Navi Mumbai. "A member of the gang was stationed at the property site. Whenever bank officials visited the place, he used to put up nameplates with Shetty and Mhatre written on them," he said.

The police has booked all the accused for impersonation, cheating and forgery under the IPC and have been remanded in jail custody. The police also informed that Saksena has been operating from Delhi and is missing at present.

Pankaj Jani had applied for the loans in the names of other people but used his own pictures. Picture 1 is the photograph he used while applying in the name of Birendra Sadhu Shetty and Picture 3 while using the name of Santosh Mhatre. Picture 2 is the building in Navi Mumbai for which the loans were allegedly taken. Jani, who is part of a bigger racket, had taken two loans of (Rs 40 lakh and Rs 49 lakh) of the seven loans he had applied for. The others, which were pending, were for Rs 50 lakh, Rs 41 lakh, Rs 54 lakh, Rs 60 lakh and Rs 24 lakh

Banks to earn Rs 475 cr from DDA housing scheme charges

The Delhi Development Authority (DDA), advertised in newspaper about the sale of about 5,000 flats in the city. By inviting the applications for the flat DDA is going to make a big earning of about Rs 4.5 lakh per flat as interest on the money it collects as refundable registration fee.

The seven banks, who are mediating the scheme, are expected to collect in about Rs 250 crore by financing the applications.

The DDA is gathering an amount of over Rs 9,000 crore collected from more than 600,000 applicants who have submitted their forms along with the registration fee of Rs 1.5 lakh.

By the last date September 16 it is expected to puff up considerably. Approximately DDA will be taking three months to take out the computerized draw for the allotment of the flats, till that period money is going to remain with the authority on which it will be earning an interest of 10 per cent before refunding the money to the unsuccessful applicants, which means it would be richer by at least Rs 225 crore. This money will remain with the DDA for three months — the approximate time the authority will take for the allotment of the flats through a computerized draw.

This is going to add an extra earning of at least Rs 4.5 lakh per flat as interest on the registration amount, which is kept with the banks that are collecting the applications. If the rate of interest is 9 per cent, the DDA will be earning an extra profit of around Rs 4 lakh per flat.

The DDA has plans to use this money to buy land for low-income group housing schemes. “That’s the model we follow. The money from the registration fees will be used to buy land to build houses for low-income groups,” said DDA spokesperson Nimo Dhar.

The DDA has announced sale of freehold flats in various localities which are aimed to cater to the aam aadmi. The flats have been priced much below the market rates, creating a huge rush of applicants. The lower price tags of the flats clearly show that the DDA is a not-for-profit developer. “We are a no-profit-no-loss organization,” the spokesperson added.

Ramesh S Singh, additional general manager of Central Bank of India, one of the seven banks mediating for the housing scheme, said the response has been tremendous.

“Real estate prices are shooting up and many people find it beyond their means to buy residences built by private players. For this section, especially the middle class, DDA flats are the best option.” Singh says this time people are showing more interest in the scheme than in a similar scheme in 2004.

The scheme has come up at a time when housing loans have gone up as a result of the central bank raising the repo rate and the cash-reserve ratio to control inflation. The premium flats have become even dearer therefore more and more people are trying their luck in this category.

The huge demand for these DDA flats has turned into a risk-free business opportunity for the seven banks — State Bank of India, Central Bank of India, Union Bank of India, IDBI Bank, ICICI Bank, HDFC Bank and Axis Bank — who are mediating the DDA housing scheme.

HDFC Bank revised rates of Foreign Currency, Non-Resident, RFC, NRE, EEFC Deposits

HDFC Bank the second largest private sector bank in the country has revised the interest rates of Foreign Currency, Non-Resident, RFC, NRE and EEFC Deposits. The rates will come into effect from September 1, 2008.

FCNR (B) deposits in US Dollar, having tenure of one year to less than two years, will have an interest rate of 2.45 per cent, while rate on the deposits with maturity of 2-3 years and 3-4 years has been set to 2.55 per cent and 2.88 per cent.

Bank sources said deposits having tenure of five years, will have an interest of 3.25 per cent.

Bank stated Euro deposits, having tenure of 1-2 year period, the revised rate was set at 4.57 per cent while for 2-3 years and 3-4 years, the interest rates will be 4.13 per cent and 4.02 per cent, respectively.

Bank further stated similarly for deposits in Pound, the rates have been revised to 5.27 per cent, for tenure 1-2 years whereas for maturities of 2-3 years and 3-4 years, rates have been revised to 4.65 per cent and 4.62 per cent respectively.

Bank sources said NRE deposits having a maturity period of 1-2 years the rates were revised the rates to 3.21 per cent while for 2-3 years and for the deposits with 3-5 years maturity period, the rates have been revised to 3.31 per cent and 3.63 per cent respectively.

Bank further added for Exchange Earners Foreign Currency (EEFC) deposits having maturity period of 30 days the rates on deposits will be 2.00 per cent whereas on 31-90 days the rates will be 2.24 per cent.