Firm loaned Adarsh money without paperwork | mumbai | Hindustan Times
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Firm loaned Adarsh money without paperwork

San Finance Corporation, owned by the Sancheti family, sanctioned a loan of approximately Rs 2-3 crore to the Adarsh society without any documentation, at a time when no bank in the city was ready to provide loans to members of the society.

mumbai Updated: Sep 05, 2012 01:49 IST
HT Correspondent

San Finance Corporation, owned by the Sancheti family, sanctioned a loan of approximately Rs 2-3 crore to the Adarsh society without any documentation, at a time when no bank in the city was ready to provide loans to members of the society.

This was disclosed by RC Thakur, chief promoter of the society, on Tuesday while deposing before the Adarsh inquiry commission.

Thakur said the society secured loans from two financial institutions - Bank of Indore and San Finance Corporation. "There was documentation with the State Bank of Indore for security of the loan. But no such documentation was made with San Finance Corporation as it was a short term loan," said Thakur. "The loan from San Finance was for the construction and it was with interest," he added.

He said he was unable to recollect if Paramveer Sancheti, the scion of the Sancheti family, was enrolled as a member of the society when the loan was taken.

Last week, Paramveer's name surfaced during the hearing when the then Mumbai Collector Idris Kundan said she had rejected his application for membership, but it was subsequently approved by erstwhile revenue minister Patangrao Kadam. Apart from the society, San Finance is reported to have granted loans to 10 other members, who included a peon and a driver.

In his deposition, Thakur further claimed that society members failed to secure loans from Mumbai-based banks.

"We had approached several banks in Mumbai for loans to our members. After we failed, we approached banks outside Mumbai, and one of them was ICICI bank, Nagpur Branch. I knew someone from ICICI bank's Nagpur branch who was dealing with housing finance," he added. ICICI bank had advanced loans to 24 members, of whom 20 repaid the money.