Verify legality of documents before financing projects: Noida DM to banks

noida: Aiming to protect interest of innocent home buyers who gets duped of their lifetime savings by fraudulent builders, the district magistrate of Gautam Buddh Nagar held a District Level Consultative Committee (DLCC) meeting with the representatives of RBI and other major banks located in the district to discuss ways to verify legality of the documents before financing projects brought before them.

As per a senior administrative officer, builders/colonizers are obligated to take permission from Noida/Greater Noida/Yamuna authority in notified area. Such projects which do not have necessary permission or such projects which are sold on false promises, should not qualify for banks approval for financing, the

official said.

"Sanctioning authority shall be held accountable for all such financial disbursements made in such cases. All NBFCs are also directed to follow these guidelines and violation, if any, shall be reported to RBI and ountability shall be fixed thereof," said Vedratna Kumar, lead district manager (LDM), GB Nagar and conveyer of DLCC meeting.

Kumar further said that it is also noted that, some of the builders carry out advertisements in different platforms, which mentions approval of bank's concerned.

"This needs to be monitored by banks and ensure that nobody is using their names and credibility, illegally, to give false sense of financial security to the prospective buyers. It is stressed that legal activity should be supported within framework of law and illegal activities should be dealt with in the strictest possible manner," he added.