Central Bureau Of Investigation vs Rakesh Verma on 25 February, 2019
43. At the branch level, loan applications are received by
credit officers of the branch and due diligence is carried out while
preparing detailed process note. The property to be mortgaged
CBI Vs. Rakesh Sharma & ors. Page 63 out of 130
against the loan, is required to be verified as well as valuation of
the property is got done. Thereafter, credit officers put up a note to
the branch manager recommending the sanction of loan. The due
diligence is conducted through empaneled advocate who has to go
to the office of sub-registrar to verify the property related
documents. The witness is not aware that in the event of furnishing
a false report empaneled advocate can be prosecuted. The decision
as to the sanctioning of loan is taken on the basis of two reports i.e.
report of advocate and valuer which are not appointed by the
branch. According to D4W1, the branch manager does not have the
power to appoint any advocate or property valuer of his own choice
to submit the due diligence and property valuation report. The
witness further stated that there is no procedure whereby branch
manager would himself visit the proposed mortgaged property in
order to satisfy himself.