High Court Rejects Petition to Quash FIR Against Ex-Bank Official in Mumbai for 10L Fraud
The Bombay High Court has dismissed a petition to quash an FIR against a former credit manager and two others accused of defrauding a housing finance company by securing a Rs 10 lakh loan for a property in a chawl. The court ruled that the FIR clearly disclosed the petitioner's involvement in the fraudulent loan transaction.
MumbaiFraudFirHigh CourtHousing FinanceReal Estate MumbaiAug 21, 2025
In December 2017, Sawnt resigned from Aspire Home Finance Co Ltd, now Motilal Oswal Home Finance Ltd, for better prospects. In 2018, Dadar police registered a non-cognisable complaint against the company for his unpaid salary dues. In 2019, on the complaint by the cluster legal manager of Virar (E) branch, the Virar police registered an FIR for cheating against Sawnt and two branch managers.
The FIR stated that Sawnt was stationed at the head office. His role was to examine the credit record of borrowers after initial recommendations from branch and cluster managers. In 2015, a loan of Rs 10.3 lakh was disbursed to a couple. After they defaulted, officials visited the property and found it to be a chawl or slum. There is no provision for granting a housing loan for the purchase of a room in a chawl or slum. The couple did not reside there and had sold the room. They had not executed a mortgage deed to secure the loan. An internal inquiry revealed that Sawnt, as credit head, and two branch managers abused their official position to sanction the loan.
The judges said the nature of allegations and whether they prima facie disclose the commission of a cognizable offense or not is required to be considered. "It is only in exceptional cases where allegations are so absurd and do not disclose an offense that courts can interfere," they added. The credit appraisal memo recorded Sawnt's role "as one of the persons involved in the loan approval process." The judges did not accept his advocate's submission that the process is subject to a legal and technical report of the property, which was the work of another department. "This is a question of fact and a matter of investigation. All this will have to be adjudicated by the trial court. Equally, that the petitioner was not a beneficiary of any amount is of no consequence at this stage," they said. They vacated a February 2020 protection order.
Frequently Asked Questions
What is the main allegation against the former credit manager?
The main allegation is that he, along with two others, cheated a housing finance company into disbursing over Rs 10 lakh for the purchase of a room in a chawl, which is not a provision for housing loans.
Why did the Bombay High Court refuse to quash the FIR?
The court found that the FIR clearly disclosed the petitioner's involvement in the loan transaction and that it was not the stage to embark upon an inquiry into the reliability or genuineness of the allegations.
What was the role of the former credit manager in the loan approval process?
The former credit manager's role was to examine the credit record of borrowers after initial recommendations from branch and cluster managers.
What happened when the officials visited the property?
When the officials visited the property, they found it to be a chawl or slum, and the couple who received the loan had sold the room and did not reside there.
What did the judges say about the petitioner's involvement in the loan approval process?
The judges stated that the credit appraisal memo recorded the petitioner's role as one of the persons involved in the loan approval process, and this was a question of fact to be determined by the trial court.
Related News Articles
Sunteck Realty Reports Net Profit of Rs 101.33 Crore in Q4 FY24
Sunteck Realty's net consolidated total income stood at Rs 434.99 crore in Q4 FY24
Due Process Must be Followed by Trademark Registrars in Examining Cases
The Mumbai High Court has ordered the Trademark Registry to re-examine a case involving the transfer of ownership of two trademarks, highlighting the importance of following due process in such cases.
Prestige Estates to Launch 43 New Real Estate Projects Across 7 Cities
The company has a total land bank of 260 acres across Bengaluru, Mangaluru, Mysuru, and Pune.
Pune Real Estate Firm Falls Victim to Rs 24 Lakh Cyber Fraud
An employee from the accounts department of a Pune-based real estate firm was tricked into transferring Rs 24 lakh to fraudulent accounts after receiving a message from someone posing as the company director’s father. The incident highlights the increasin
How REITs and Fractional Ownership are Reshaping the Real Estate Market
With minimum investment thresholds ranging from Rs 10-25 lakh, retail investors now have the opportunity to participate in the real estate market with limited capital.
Bombay High Court Allows Adani Electricity to Cut 209 Mangroves for Infrastructure Project
The Bombay High Court has issued a ruling permitting Adani Electricity Mumbai Infra Ltd. (AEMIL) to cut down 209 mangroves near Vasai Creek for a critical infrastructure project.