Ahmedabad Builder Firm Under Probe for Alleged Sale of Mortgaged Flats

Authorities investigate claims that pledged residential and commercial units were sold without bank approval in a suspected real estate fraud case

A real estate investigation has been launched in Ahmedabad after allegations surfaced that a builder firm sold flats and commercial properties that were already mortgaged against a bank loan of nearly ₹3 crore. Police are now examining whether the encumbered units were transferred to buyers without informing the lending institution or obtaining required approvals.

The case has raised concerns over financial irregularities in the local property market and possible misuse of secured assets.

Loan Default Triggers Discovery of Alleged Fraud

The dispute came to light after a complaint was filed at Navrangpura police station against directors of Keshav Narayan Buildcon LLP, the developer behind the Akshar Elysium project in Ahmedabad.

According to the complaint, the firm had taken a loan of around ₹3 crore from ICICI Home Finance by mortgaging several flats and commercial units as collateral.

While initial repayments were reportedly made on schedule, authorities said irregularities began surfacing after January 2025, when EMI payments became inconsistent and eventually stopped.

Following the default, the lender reviewed the loan account and discovered that multiple mortgaged properties had allegedly already been sold to third-party buyers.

Allegations of Sale Without Bank Consent

Investigators claim that the disputed units were transferred without obtaining a mandatory No Objection Certificate (NOC) from the financing institution, despite being pledged as security for the loan.

The complaint was filed by an employee of ICICI Home Finance’s CG Road office in Ahmedabad. It names company operators Ronak Sonani and Gordhan Gangani as key individuals under scrutiny for alleged financial misconduct and unauthorized property transactions.

Police are now mapping out how many units were sold while under mortgage and whether buyers were informed about the encumbrance status at the time of purchase.

Probe Expands to Financial and Documentation Records

Authorities are currently examining:

• Mortgage and loan agreements
• Property registration and transfer records
• Buyer documentation and sale deeds
• Bank repayment history
• Financial transaction trails

Investigators are also assessing whether intermediaries, including brokers or agents, played any role in facilitating the alleged unauthorized sales.

A key part of the inquiry is determining whether purchasers were aware that the flats and shops were already pledged as collateral to the bank.

Possible Wider Financial Misuse Under Investigation

Officials indicated that the case may extend beyond a simple loan default, suggesting potential concealment of encumbered assets and misuse of secured properties.

The probe is also exploring whether funds from property sales were diverted and whether additional stakeholders or financial institutions may have been affected by the transactions.

If confirmed, the allegations could lead to both criminal proceedings and multiple civil disputes involving ownership rights and recovery actions by lenders.

Growing Concerns in Real Estate Sector

The case has once again highlighted risks in India’s fast-moving real estate sector, particularly concerning the sale of mortgaged properties without lender approval and weak due diligence practices.

Experts say such cases often lead to prolonged legal disputes between buyers, builders, and financial institutions, especially when property status is not clearly disclosed at the time of sale.

Authorities are expected to continue gathering evidence as the investigation progresses.