Mumbai: How did Punjab National Bank sanction a Rs 3 cr housing loan in 2 hours?

The flat for which home loan was taken is in Badrinath CHS Ltd in Seven Bungalows, Andheri. Pics/Datta Kumbhar

There's no end to Punjab National Bank's (PNB's) deception. Even as probes by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) into the Rs 11,400-crore Nirav Modi scam are underway, Mumbai Police has initiated an inquiry against the bank's Santacruz branch, which allegedly sanctioned a housing loan of R3 crore on the same day it received the application, in two hours! It allegedly gave an overdraft of R1 crore to the same individual without verifying documents or conducting any background check.

The flat in Badrinath society in Andheri West

According to the police, the incident (submission of documents in the bank and the sanctioning of the loan) happened on June 7, 2017, for a flat in Badrinath CHS Ltd in Seven Bungalows, Andheri West, which is valued at over R15 crore. This is the same building in which Bollywood star Anushka Sharma too occupies three flats, on the 20th floor.

Split wide open
The illegality came to light on January 9 this year, after PNB's circle office, Mumbai Suburbs, BKC, wrote to Badrinath society, seeking confirmation of an NOC issued on its letterhead, and signed by its secretary, for the sale of the mortgaged flat. The society denied having issued any such NOC, saying both the letterhead and the secretary's signature were forged. It added that there was no such sale happening, and lodged a complaint with the Versova police on January 15.

The Versova police have initiated an inquiry and sent notices to the concerned parties, including PNB. "We have received complaints from both the society and the flat owner. We are in the process of recording statements of all parties. We will discuss the matter with our superiors and take appropriate action law," said an officer.

Even as flat owner Sakharam Naik, 60, an NRI running a garment manufacturing company in Bangladesh, too, has lodged a complaint with the Versova police, alleging forceful attempt to take over his property by using forged papers, the man who had availed the loan from PNB, Hardik Gothi, has filed a suit against Sakharam and his wife Rita, 54, claiming possession of their flat. The matter will come up before the Bombay High Court on February 26.

The case
The whole murky business started with Sakharam needing R3 crore urgently to keep his business afloat and failing to get the funds in Bangladesh. He got in touch with property brokers in Mumbai, who had got him his Andheri flat, seeking reference of private financers.

A broker connected him to Rajesh Dahanukar, chairman and MD of a credit society in Andheri. Dahanukar assured Sakharam of getting the funds for him in a few days. The two started communicating, and Dahanukar emailed Sakharam a draft MoU between the two of them. Accordingly, Sakharam came to Mumbai on June 5, 2017.

As per the draft MoU, Dahanukar would loan R3 crore to Sakharam at a monthly interest rate of 2 per cent (R6 lakh/month), which Sakharam would have to pay in advance every quarter (Rs 18 lakh). "As collateral security, I was asked to enter into an 'Agreement for Sale', which, as per the MoU, would be terminated on receipt of the entire loan amount with interest within the stipulated time period," Sakharam told mid-day.

Advocate Dinesh Tiwari, who is representing Sakharam in the case, said, "On June 7, when he went to the sub-registrar office in Andheri to sign the documents, he saw that the agreement for sale mentioned Hardik Gothi instead of Dahanukar. When he asked Dahanukar about it, he was told that Gothi was his associate, and because the agreement for sale was just a formality, he didn't need to worry.

"A few days after he received the money, he found out that it had come from PNB's Santacruz branch." According to Tiwari, "Out of the Rs 3 crore that was promised to my client, it was he who paid Rs 28 lakh towards stamp duty and registration, Rs 15 lakh (5 per cent of Rs 3 crore) service charge, Rs 1 lakh processing charge and first quarter interest of R18 lakh, with only the balance being deposited into his account [which he immediately paid to his creditors]." The advocate has questioned why would Sakharam do all this if he were selling the flat.

The twist
"Everything was for two months. On September 9, 2017, Gothi visited the flat and told my client that he had come to take physical possession of it, as instructed by Dahanukar," said Tiwari. Sakharam said, "I was shocked. I phoned Dahanukar, who said it was a misunderstanding and asked to speak to Gothi. After their chat, he left the house."

Sakharam added that even as he continued to pay the quarterly interest to Dahanukar, Gothi and his family members kept trying to take over his property. During a meeting between Sakharam and Gothi on December 18, 2017, the former claimed that he found out about the loan that had been taken from PNB for his flat based on the agreement for sale, and also realised that the society papers and his signatures had been forged.

Tiwari said, "My client had agreed to sign the agreement as he was told it would only be used as a surety. "It appears the entire system in PNB is so corrupt that officers at all levels are freely indulging in unethical practices, including manipulation of documents. The lightning speed at which the loan was sanctioned, without following due procedure, clearly hints at kickbacks to the concerned bank officials, who didn't bother to verify the authenticity of the documents submitted either."

The other side
While attempts made to contact Gothi did not yield any result, his lawyer, advocate Chirag Sancheti, in a letter dated January 10, 2018, a copy of which is with mid-day, addressed to Sakharam's previous laywer Ranjit Singh, has denied all allegations levelled against his client.

The letter states, "Receipt of Rs 3 crore by your client (Sakharam) is towards the sale consideration of flat 1802-1902 in Badrinath Tower ...it is crystal clear that there is a sale of the said flat by your client, and my client made the payment under the agreement for sale... It is unlikely any person would enter into agreement for sale for just a loan. Also, my client (Gothi) is into the construction business and is not involved in any money-lending activities."

Experts aghast

Vimal Punamiya, chartered accountant
'This is a classic case of misuse of power - an ordinary citizen is harassed with all sorts of conditions and asked to submit many documents before his loan is cleared. And in other cases, the same bank overlooks all norms, works in connivance with middlemen and a few bank officials, going out of their way, to provide financial assistance. This only exposes the rotten banking system and the level of corruption within.'

Vinod Sampat, advocate
'There have been ample instances of bank frauds, because of nexus between bank staff and touts, which adversely affects the bank's reputation. It is high time the government fixed accountability strictly.'

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