Mumbai: Investigation turns to bank officials in multi-crore house of cards scam, crackdown soon

Police show evidence collected. Pics/Hanif Patel

The Mira Bhayandar Vasai Virar (MBVV) police, investigating the multi-crore house of cards scam, are poised to crack down on banking officials involved in facilitating loans to home buyers for kickbacks. Recently, the Virar police station's investigating team summoned several banking officials and recorded their statements to verify compliance with Standard Operating Procedures (SOPs).

Authorities warned of imminent arrests for banking officials found guilty of granting loans to ineligible home buyers. The investigators believe that the bogus builders created fake salary slips and fabricated three years' worth of income tax returns to secure loans, prompting a thorough scrutiny of all relevant files.

The alleged illegal building in Virar. Pics/Hanif Patel

Senior Inspector Rajendra Kamble said, "We've questioned seven banking officials regarding SOP adherence some officials have said that they have adhered as per Reserve Bank of India guidelines. Some officials claimed compliance with their own SOPs. So, we have requested them to submit these for our investigation."

Kamble added, "If found guilty, banking officials could face arrest in the 17 FIRs related to bogus CCs or OCs. Our investigation remains active, and multiple arrests have already been made."

The accused: Prashant Patil; Rajesh Naik; Dilip Benbanshi

The investigating team accused civic officials of delaying responses to police queries, hindering progress in the investigation.

In the previous reports, mid-day exposed the construction of residential complexes by a gang of bogus builders on government lands, unnoticed by Vasai Virar City Municipal Corporation (VVCMC) officials.

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Virar police registered an FIR on July 23, leading to the arrest of mastermind Prashant Patil and his associates on August 1. During the investigation, authorities seized 1,100 fake VVCMC letterheads, 115 fake stamps, 500 fabricated CIDCO letters, and 55 counterfeit CC files across 13 banks and finance companies.

A comprehensive 3,500-page charge sheet has recently been filed, listing Prashant Patil, Dilip Benbanshi, Macchindra Vahanmane, Rajesh Naik, Pramod Zore, and Devendra Manjhi as main suspects. Patil and Benbanshi were linked to fraudulent construction in Rudransh Apartment, Virar East, using fake government documents.

Sources in the police department revealed bogus builders' partnerships with commission-based agents, facilitating loans through housing finance banks and patpedhis using customers' documents collected from the former's office.

The officer involved in the investigation highlighted the oversight of banking officials, saying, "Had they properly scanned the documents, these loans wouldn't have been granted."

A senior police officer emphasised, "It was all in connivance with corrupt civic officials who held key posts when bogus builders illegally grabbed lands, constructing buildings with fake Commencement Certificates (CCs), luring home buyers to invest their savings."

Regarding evidence, an officer involved in the investigation said, "We seized a computer and laptop from the accused, sent them to a forensic lab for imaging, and forwarded a copy to VVCMC. However, the civic officials are delaying responses."

Highlighting the need for further investigation, the officer said, "Numerous fake letterheads from MahaRERA, collector offices of Thane, Palghar, etc., indicate the need for a supplementary charge sheet. The delay from the civic body is obstructing our progress."

After the case came to light in July, VVCMC formed a 10-member inquiry committee but failed to make headway. One officer questioned, "Did the officials question their former superiors involved in the illegitimate construction?"

Upon inquiry, VVCMC's Additional Municipal Commissioner, Ajinkya Bagade, redirected queries to other officials, saying, "I am not authorised to provide information. Contact Deputy Municipal Commissioner Kishore Gawas or Additional Municipal Commissioner Ramesh Manale."

However, these officials were unavailable for comments.

July 23
Day FIR was filed in the matter