Profile Funding Fraud Profile Funding is a form of real-estate cum banking fraud most commonly committed by builders along with agents/bank. Builders induce honest customers with a good salary profile and high CIBIL score into this fraud leading to grave civil and criminal consequences without their knowledge. Agent convinces financially stable person (borrower) to buy a flat in builder’s project and take a housing loan in his/her name only and lure them by saying “No EMI till possession” and commission. Profile funding scam is also referred to as “profile lending”, “profile financing”, “profile loan builder”, “bank scam”. Such borrowers mostly working with private firms like IT/Software/Fintech professionals fall prey to such frauds as they have good credit scores along with regular salary credits into their bank account and squeaky clean financial history. Profile funding scam continues even after RBI and National Housing Bank mandate loans to be disbursed as per stage construction of property, You might lose your job if your employer verify’s credit history. (Most common in stock exchange, finance companies etc.) Banks file these recovery and cheque-bounce cases from places which are at distant locations from the borrower to make him/her spend money to travel. Builders sell the same flat to another buyer without informing first buyer or settling the loan taken on property. Banks will also file FIR’s against borrowers accusing them of: As a victim of profile funding, do not: You can land yourself in jail by stating something wrong unintentionally. It is extremely important to approach profile funding scams with a strong and legally water-tight game plan. Consumer courts have a wider jurisdiction and strong enforcement powers over banks and can grant you reliefs such as: You can approach RERA and file a complaint for similar reliefs. You can also file a Writ Petition before the High Court or Supreme Court asking for: In cases where: Criminal cases can be initiated only against builder with utmost caution and legal scrutiny. We have represented Tausand clients across India affected by profile funding and builder fraud. You NEED legal intervention, period. Profile Funding scams involves multiple laws. Say the wrong thing and you could irreversibly harm your case as a borrower. Understanding Profile Funding Fraud
How Profile Funding scam works?
In most of the cases:
Issuance of Fake Down Payment Receipts & Tampered Documents
To meet lending requirements builder will:
Illegal methods employed by banks to disburse loan
The EMI Game Changer & Ruination of Credit Health
Initially builder:
Later:
You will not be able to apply for Loans/Credit cards:
Litigation to harass and torture from far-away locations
Dual Funding – When criminal charges can be levied against builders also.
Resulting into grave criminal offences like:
Civil & Criminal consequences faced by borrowers/ victims.
Civil consequences:
Criminal Liability borrowers are NOT aware of
What NOT to do if you’re a victim of Profile Funding?
What SHOULD YOU DO if you’re a victim of Profile Funding?
THE LEGAL APPROACH to tackle Profile Funding.
LEGAL RECOURSE against Profile Funding.
Consumer Court or Consumer Forums
Approach RERA
File a Writ Petition Approach HC / SC
High Courts have granted anticipatory relief in cases where:
Initiating Criminal Proceedings Against Builder (Fact Specific)
Our Experience
Our experiences has:
The Importance of Right Legal Advice
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