Pune Real Estate Loan Fraud: CBI Books Firm, Partners And Former SBI Chief Manager For Allegedly Cheating Bank Of ₹32 Crore

Mumbai: The Economic Offences Branch of CBI Mumbai has launched an investigation against a partnership firm engaged in real estate business, its partners and the then SBI chief manager for allegedly cheating State Bank of India (SBI) to the tune of over Rs 32 crores. The borrowers had approached the bank for sanction of working capital for construction and development of high-end independent villas at Pune. The bank had sanctioned working capital to the borrower, however despite availing financial assistance from the bank, the borrower allegedly failed to utilize the funds for the purpose for which it was sanctioned and failed to complete the project, the bank stated in its complaint to the CBI.

Sales Proceeds Allegedly Diverted

According to the CBI, a complaint was received from Manish Jaiswal, Assistant General Manager, SBI, Pune alleging that between 2018 and 2023 the Pune-based borrower company and its partners in criminal conspiracy with the then Chief Manager, SBI, and other unknown public servants and unknown others, cheated SBI, Small Industries Branch (SIB), Pune to the tune of Rs. 32 crores by fraudulently submitting incorrect documents, thereby dishonestly inducing the bank to sanction working capital. The complaint disclosed that the borrower firm and its partners dishonestly and fraudulently induced the bank to sanction the credit facilities by submitting incorrect documents.

"The borrower firm failed to commence the constructions of some of the villas, while some villas were not fully constructed. Further, the borrower firm and its partners had undertaken to route and deposit 90 to 95 percent of the sales proceeds with SBI, but diverted and siphoned off the funds. In certain cases, the borrower firm sold the villas and disposed of the mortgaged properties without obtaining mandatory Non-Objection Certificate from SBI. The complaint further revealed criminality on part of the then Chief Manager, SBI in connivance with borrower on disbursement of loan without verifying actual physical progress of the project, failure to ensure end use of funds, disbursement of funds without ensuring compliance of sanction terms and conditions, failure to verify supporting quotations and tax invoices before release of funds and failure to verify and reconcile project progress. The account of the borrower company slipped to NPA in July 2023 and was declared as fraud in May 2025," said a CBI official.

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