A personnel officer of a nationalised bank was sanctioned a housing loan of Rs.25 lakhs for the construction of a residential house at 8.5% per annum repayable in 120 months.But,the borrower constructed a commercial building with an intention to let it out to another nationalised bank.But no bank came forward as the rent quoted by him was very high.Then in connivance with the Regional Head of his employer,this building ( ground floor) was let out to same bank for one of its branches in the same locality by terminating existing lease period prematurely and shifted its branch to above building in 2007.Landlord readily agreed to terminate the lease as there was good demand for his building.In the neantime,housing loan became NPA due to overdues.Then Regional Head pof this bank rescheduled the loan from 120 months to 240 months at 11.50% and EMI was reduced from Rs.31000 to Rs.24000 as a result account was converted as STANDARD asset.It appears that there are violation of lending normws by this bank to give undue favors to this public servant.The graqve irregularities are as under
Loan amount was used for the construction of commercial building where the rate of interest for such loans is 15.50 to 18%
Loan was rescheduled by extending the tenure of loan which is not allowed.It is learnt that bank can reschedule the loan without extending the original tenure
Concerned officer has also suppressed / concealed truth before the bank authorities
Involvement of Regional Head to accommodate the officer is also observed
Kindly analyse this case and guide me how to expose these misdeeds
