Central Bureau of Investigation (CBI) logo.  (File Photo | PTI)
Tamil Nadu

CBI books six in home loan fraud in Chennai; says developer inflated valuation

Based on a complaint by SBI, CBI said the bank gave a loan of Rs 2.76 crore to Arivalagan, the NRI, for buying two flats in Aminjikarai in 2018.

Express News Service

CHENNAI: CBI anti-corruption bureau on Wednesday held searches in Tambaram related to a fraud case filed against six people, including an NRI, for duping SBI and diverted sanctioned home loans worth Rs 3.67 crore, which later became non-performing assets.

According to FIR, CBI named P Arivalagan, director of Atchaya Royal Infrastructure, as first accused and B Jayachandran, Suryanarayanan, D Santosh, Hitler Natesan, M Vedamurthy, and unknown bank officials as co-accused in case.

Based on a complaint by SBI, CBI said the bank gave a loan of Rs 2.76 crore to Arivalagan, the NRI, for buying two flats in Aminjikarai in 2018. As he failed to repay, it turned into NPA.

CBI said Santosh, a developer, would identify unsold flats and enter into “unholy arrangements” with land owners and approach banks with fake borrowers to get loans that would then be diverted to the owner. Suryanarayanan and B Jayachandran conspired to submit inflated valuation reports for these properties, the agency added.

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