State Bank Of India [SBI] — Fund diversion by builders M/s Shapoorji Pallonji Real Estate at New Town, Kolkata

To
The Chairman
State Bank of India.


Fund diversion by builders M/s Shapoorji Pallonji Real Estate at New Town, Kolkata

Sirs,

M/s Bengal Shapoorji Housing Development Pvt. Ltd. in 2007 had been allotted 150 acres of land at AA-III, New Town, Kolkata by WBHIDCO for construction of mass housing project. As per agreement with WBHIDCO, M/s BSHDPL was supposed to build around 20, 000 flats in 9 phases. But even after twelve years since start of the project, so far M/s BSHDPL has been able to complete first four phases only. All kinds of construction works are stalled for more than two years. A single visit to the site will reveal the true picture.

Builder has even altered the clauses of the Tripartite Agreement to suit their needs without any knowledge of the bank or borrowers. Registration of sale deed is pending for months, even though they have already taken the amounts intended for stamp duty and other registration related expenses. However some branches as well as loan processing centers of SBI are still sanctioning and releasing home loan installments to this builder without any verification of the actual construction work undertaken. Now similar unethical practices are being played by the same Shapoorji Pallonji real estate group at its projects at Joyville, Western Heights at Salap, Satragachi, Howrah, WB.

Please initiate measures immediately for physical verification of the construction site and stop release of any further funds till completion of actual handover of apartments of phases whose delivery deadlines are already over. More importantly seek legal recourse against this defaulting builder in case normalcy of the construction process is not restored soon to protect the interests of the bank and its borrowers. Also stop any further housing loan disbursement for the groups’ similar projects in West Bengal like Joyville, Western Heights at Salap, Satragachi, Howrah.

Thanks & Regards,
Sunil Yadav
AA-III, New Town
Kolkata-700135.

Copy for information and necessary action:-

The Regional Head,
RBI Kolkata.