A major real estate fraud probe has been opened in Ahmedabad after a builder firm was accused of illegally selling mortgaged flats and commercial units linked to a nearly Rs 3 crore loan from ICICI Home Finance, with police examining whether encumbered properties were transferred to buyers without the bank’s knowledge or approval.
Loan Default Brought Mortgage Dispute to Light
The complaint has been registered at Navrangpura police station against directors of Keshav Narayan Buildcon LLP. According to the complaint, the firm had obtained a loan of nearly Rs 3 crore from ICICI Home Finance by mortgaging multiple flats and shops in its Akshar Elysium project as collateral security.
Investigators said the builders initially continued paying loan instalments after taking the credit facility. However, irregularities allegedly began to surface after January 2025, when EMI payments became inconsistent and later stopped. Following the default, bank officials reviewed the loan account and the legal status of the mortgaged properties.
During this verification, authorities allegedly found that several flats and commercial units pledged to the bank had already been sold to third party buyers. According to the allegations, these transfers were made without obtaining the mandatory No Objection Certificate from the bank even though the properties remained under mortgage.
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Bank Complaint Names Builder Firm Operators
The complaint was reportedly filed by Dinesh Yadav, an employee associated with ICICI Home Finance’s CG Road office in Ahmedabad. The FIR names company operators Ronak Sonani and Gordhan Gangani, against whom allegations of financial misconduct and unauthorised property transfers have been raised.
Police are now trying to determine how many mortgaged units were allegedly sold and who all were involved in those transactions. Investigators are examining mortgage records, property transfer documents, bank agreements, payment trails and buyer related paperwork as part of the inquiry.
Officials are also attempting to establish whether the purchasers were aware that the properties had already been mortgaged to the bank when the sales took place. If buyers were not informed of that status, the case could lead to prolonged disputes involving ownership rights, bank recovery action and civil litigation.
Probe May Expand Beyond Loan Default
Sources linked to the investigation said authorities are treating the matter not merely as a case of loan default but as a possible instance of financial deception involving concealment of encumbered assets. Police are also examining whether brokers, intermediaries or other financial entities played any role in facilitating the sales.
Investigators are collecting documentary and digital evidence and tracing the movement of funds connected to the disputed transactions. They are also examining whether additional investors or financial institutions may have been affected.
Officials believe that as the investigation progresses, further details may emerge regarding the project’s financial structure, ownership transfers and the possible diversion of funds. The case has also renewed concerns within the banking and property sectors over the sale of mortgaged assets without lender clearance and the risks posed by inadequate due diligence in fast moving real estate markets.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
