NHB Flags Suspected Fake Loans Worth ₹400 Crore at SRG Housing
What Happened
National Housing Bank (NHB) has flagged suspected fictitious loan accounts worth ₹300-400 crore at SRG Housing Finance. Investigators reportedly found loans that appeared to have been disbursed but where the actual borrowers could not be verified. The amount under scrutiny represents roughly one-third of the lender’s loan portfolio.
Key Takeaways
NHB has classified the account as a Red Flagged Account (RFA), triggering a deeper investigation into possible irregularities, including alleged evergreening of loans and NPA manipulation. However, an RFA is not the same as a fraud declaration, and SRG Housing Finance has denied the allegations, saying it has received no adverse communication from NHB.