Here’s how Bha­rana duped many banks

DNA (Delhi) - - FRONT PAGE - Dipu Rai dipu.rai@dnain­dia.net

New Delhi: Bank de­tails and doc­u­ments for­warded to the En­force­ment Direc­torate (ED) by the Prime Min­is­ter’s Of­fice (PMO) ac­cessed by

DNA have re­vealed that Del­hibased in­dus­tri­al­ist Hem Singh Bha­rana (55) duped al­most all lead­ing In­dian banks in the coun­try. The modus operandi was sim­ple – bor­row loans from fi­nan­cial in­sti­tutes under his flag­ship com­pany ERA In­fra En­gi­neer­ing Ltd (EIEL), de­fault pay­ments and laun­der money. Bha­rana al­legedly duped over 30 lend­ing in­sti­tu­tions and nearly 3,000 home­buy­ers to the tune of Rs 16,000 crore. Banks doc­u­ments, in pos­ses­son of DNA, shows Bha­rana’s com­pany EIEL, listed in the stock mar­ket, was de­clared a non-per­form­ing as­set over 8 278 Cr from 22 banks as on May 31, 2016.

Bha­rana was ar­rested by the Gur­gaon po­lice on July 14, 2015, in con­nec­tion with fraud in his real estate projects. How­ever, he was re­leased on bail in Septem­ber 2015. Emails, SMS sent to Bha­rana seek­ing com­ments did not elicit any re­sponse at the time of go­ing to the press.

A com­plaint was for­warded to the PMO three years ago, against Bha­rana, Rekha Bha­rana di­rec­tor of EIEL, Bi­jan­der Singh Chaprana, di­rec­tor of Desert Moon Real­tors Pvt Ltd for cheat­ing banks and home­buy­ers. They col­lected money through prelaunches and bought lands and raised heavy loans on those lands.

For in­stance, Adel Land­marks (ear­lier known as Era Land­marks) raised Rs 2,557 crore via mort­gage and an­other Rs 500 crore from buy­ers of dif­fer­ent projects in Gu­ru­gram.

In this way, Bha­rana fraud­u­lently col­lected and trans­ferred more than Rs 3,000 crore to EIEL. Bha­rana al­legedly also trans­ferred huge amounts of the si­phoned off money to his Bri­tish Vir­gin Is­lands-based com­pany, Peach Glow Hold­ings Ltd.

Adel Land­marks and other sub­sidiaries ran a col­lec­tive in­vest­ment scheme from 2010 to 2013 and pur­chased lands in Gu­ru­gram. They mort­gaged the land to var­i­ous pri­vate and PSU banks and fi­nan­cial in­sti­tu­tions in­clud­ing UCO Bank, Vijaya Bank, ICICI, Axis, IFCI, and SBI at in­flated prices than their ac­tual value.

Bha­rana’s realty sub­sidiaries, Desert Moon Re­laters Pri­vate Lim­ited got a li­cense to launch Cos­mos City 3 in 2012. Pro­mot­ers ver­bally told buy­ers that In­dia’s top PSU banks in­clud­ing SBI would pro­vide loans for the hous­ing project along with Vijaya Bank, LIC Hous­ing fi­nance and PNB hous­ing fi­nance lim­ited.

Full re­port on dnain­dia.com

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