CBI Books Realty Firm for ₹26.55-Crore SBI Bank Fraud

Mumbai's Special Task Branch of the Central Bureau of Investigation (CBI) has registered a case against a realty services company and its promoters and directors for allegedly causing a loss of ₹26.55 crore to the State Bank of India (SBI).

The case is based on a written complaint by M. Sanjeev Kumar, Deputy General Manager, SBI Administrative Office, Pune. According to the complaint, the borrower company, which has its registered office in Andheri, was sanctioned a term loan of ₹25 crore under the project finance scheme in July 2017 for a project located at Hinjewadi in Pune.

The CBI alleged that the company submitted a chartered accountant's certificate with questionable information. The certificate stated that the total cost incurred till September 2018 was ₹39.90 crore, out of which the construction cost was ₹29.25 crore. However, the actual construction cost was only ₹17.88 crore, as per the company's books of account.

The promoters allegedly availed of the full loan disbursement, while only 50 per cent of the project was completed. The funds provided by the bank were allegedly diverted through loans and advances given to an associate concern. Due to non-payment of dues, the account turned into a non-performing asset (NPA) in December 2020 and was declared as fraud in March 2025.

The CBI claimed that the accused colluded in committing criminal acts such as diversion of funds, misappropriation of funds, and criminal breach of trust. The offences were allegedly committed with the intention of making unlawful gains while causing wrongful loss to the bank.

A case has been registered by the CBI under relevant provisions of the Indian Penal Code and the Prevention of Corruption Act on charges of criminal conspiracy, criminal misappropriation, cheating, and criminal misconduct.

The real estate sector in Mumbai has been plagued by several instances of fraud and corruption in recent years. This case highlights the need for stricter regulations and oversight to prevent such incidents.

The CBI's investigation into the matter is ongoing, and the agency is likely to question the accused and gather more evidence in the coming days.

The case has significant implications for the banking sector, as it highlights the risks associated with lending to real estate companies. The SBI, being one of the largest public sector banks in the country, has a significant exposure to the real estate sector.

The incident also raises questions about the effectiveness of the current regulatory framework in preventing fraud and corruption in the real estate sector. The government and regulatory agencies need to take steps to strengthen the framework and prevent such incidents in the future.

In conclusion, the CBI's registration of a case against the realty firm and its promoters and directors is a significant development in the fight against corruption and fraud in the real estate sector. It highlights the need for stricter regulations and oversight, as well as the importance of holding those responsible for such incidents accountable.