Here’s how Bharana duped many banks
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