Court directed the CBI to register an FIR based on the bank's complaint due to fraudulent loan approvals and collusion among officials, underscoring the urgency of preventing offenders from evading justice.

ORDER :

M.Nirmal Kumar, J.

The petitioner, Regional Manager of State Bank of India, Chennai South Zone, West Tambaram, Chennai filed this Writ Petition seeking direction to the respondent/Central Bureau of Investigation to register First Information Report (FIR) on the basis of the complaint, dated 08.03.2023 lodged by the petitioner.

2.Gist of the complaint, dated 08.03.2023 is as follows:

(i) The petitioner, Regional Manager of State Bank of India, Regional Business Office, Tambaram, Chennai is the controller of State Bank of India, Medavakkam Branch. He has been authorized to lodge complaint under the Regulations 76 & 77 of State Bank of India General Regulations, 1955 which is statutory. The Retail Assets Central Processing Centre (In short “RACPC”) is a Loan Processing Cell of the State Bank of India looking after the processing, sanctioning and disbursement of diversified credit facilities such as housing loan, car loan, education loan mortgage loan, personal loan etc. The RACPC also undertakes the end-to- end facilitation viz., preparation of appraisal, pre-sanction and post-sanction/pre-disbursement inspections, documentation and account maintenance for all kinds of credit facilities sanctioned till closure of accounts.

(ii)One Mr.A.Murugan for development and purchase of property i.e., a flat at “R.J.Book Square”, Kundalahalli Village, K.R.Puram, Hobli, BET Bangaluru promoted and sold by M/s.R.J.Rishikaran Projects Private Limited, had approached the State Bank of India, Medavakkam Branch claiming himself to be the Proprietor of M/s.Arun Agency having office at Puzhuthivakkam, Chennai and requested for sanctioning of Housing Term Loan submitting his loan application, dated 30.12.2018. On completion of procedural compliances, the Loan Report was sent to RACPC, Tambaram. The then Branch Manager Mr.T.K.Balaji after completion of Legal Due Diligence, Valuation Process and other documentation process, sanctioned the Housing Loan (HTL Account No.38154161278) for a sum of Rs.550 lakhs in favour of Mr.A.Murugan on 31.12.2018 for development and purchase of property in R.J.Brook Square, Bangaluru.

(iii)As per the loan agreement and documents executed by the said Mr.A.Murugan in favour of the bank on 31.12.2018, the loan amount was agreed to be repaid with interest in Equated Monthly Installments of Rs.4,65,331/- commencing from 30.01.2019. Mr.A.Murugan also availed SBI Suraksh Loan in Account No.38155422163 of Rs.30 lakhs on 31.12.2018. Since the project was under construction/development, Equitable Mortgage was not created in favour of the bank towards the Loan Facility sanctioned. It is to be noted that the said loan was sourced by one Mr.K.Balasubramanian, Housing Loan Counselor.

(iv)After availing the Credit Facilities, the Borrower Mr.A.Murugan not shown interest for repayment and the account became (Non-Performing Asset) NPA on 25.01.2021. On scrutiny, the Bank noticed the breach in the loan agreements and failure on the part of the Borrower to create the Equitable Mortgage of the properties in favour of the Bank and also conducted internal investigation. The internal investigation revealed the fraud committed by Mr.A.Murugan in the housing loan availed by him in HTL Account No.38154161278.

(v)The Income Tax/PAN credentials of the Borrower were not obtained and verified as per guidelines and the verification was done by the then Branch Manager, Medavakkam Branch. Further, the Income Verification of the Borrower was done by M/s.Navashakthi Engineering Private Limited, Chennai. However, the Income Tax Returns for AY 2015- 16, 2016-17, 2017-18, 2018-19 were signed by Mr.T.K.Balaji, the then Branch Manager of Medavakkam Branch, not by