PUCL unearths land frauds by Banks

Mangaluru: The People’s Union for Civil Liberties (PUCL) claims to have unearthed a deep-rooted conspiracy against common people by the district authorities in collusion with bank officials and politicians.

According to PUCL activist Ajoy D’Silva in a press release here today, orders are being issued without notice or proper proceedings and even without careful scrutiny of

supporting documents in applications filed by banks under Sec. 14 of the SARFAESI Act.

Additionally, the police have allegedly filed B reports despite substantial evidence, which emboldens such fraudulent activities, which the PUCL points out will help fraudsters. The press release cites various documents, including the First Information Reports filed by the Police in Dakshina Kannada district and numerous FIRs (FIR No. 116 of

2019, FIR no. 146 of 2019, FIR no. 66 of 2021, FIR no. 24 of 2022, and FIR No. 47 of 2022) have been registered in connection with bank frauds involving bank officials collaborating with habitual fraudsters.

Banks and financial institutions allegedly file applications before the Deputy Commissioner, District Magistrate Court, Dakshina Kannada, under Sec. 14 of the SARFAESI Act to take possession of properties. Shockingly, these applications are often approved without notifying borrowers or

defendants and without proper proceedings, relying on dubious Documentation. The release alleged.

On many occasions, the banks have allegedly misled the district officials by signing the wrong documents without much depth. Such practices have resulted in unsuspecting property owners who have never taken loans or acted as guarantors, losing their lands to the banks without even taking loans from the banks. The police have been allegedly slow to respond to bank frauds, as evidenced by FIRs filed only after fraudulent notices were issued and the police allowing banks to file applications before the DC Court. These notices often allegedly contain errors in names and addresses, and a lack of address proof. The release stated.

In one case, despite the DC Court sending a notice to the bank regarding a fraudulent land conversion, the bank still received a favourable order. Additionally, false sale deeds and dubious loan applications were accepted, resulting in the auction and economic distress for property Owners added to the release.

In one dire case, the bank manager of a nationalised bank had given loan to a company based on the surety of a sale deed in the name of a non-existent person submitted by its proprietor. A loan was given by the bank manager, knowing fully well that every sale deed before the bank reveals that the same company to which the loan is going to be given as a current account in another nationalised bank in another name as its proprietor.

Another case involved a bank manager obtaining a loan on an

individual's property, depositing the funds into a benami account, and then getting dismissed from service. Funds worth several crores were found in the Benami account, the release alleged.(eom)