IBA concern over home loan frauds

The Indian Banks Association is concerned about the proliferating cases of housing loan frauds. It has undertaken a survey of member banks to collect data on housing loan frauds and evolve a concrete action plan to tackle the problem. IBA has asked member banks to provide information on frauds they have encountered by fabrication of income documents (such as IT return, salary slip etc), encashment of loan cheques by third parties, frauds caused by forged title documents (through use of colour photocopies and fake stamp paper), overvaluation of property to secure higher loan amounts and instances of multiple financing by different agencies. Housing loans grew from a level of Rs 16,000 crore in 2001 to a level of Rs 1,86,000 crore in 2006.