The National Housing Bank (NHB), a subsidiary of Reserve Bank of India (RBI), will look into the ₹2,000 crore housing finance scam by the Pune-based DSK Group across Maharastra. Acting on a complaint by former BJP MP Kirit Somaiya, the NHB agreed to take steps to review the abuse of subvention housing finance schemes. The Pune police had earlier this year arrested six persons, including Ravindra Marathe, CEO and MD of Bank of Maharashtra (BoM), and the bank’s former CMD Sushil Muhnot, in connection with the ₹2000-crore D.S. Kulkarni fraud case. Mr. Kulkarni, a prominent Pune-based developer known as ‘DSK’, and his wife Hemanti, have been accused of defrauding thousands of investors across Pune, Mumbai and Kolhapur. The 36,000-page charge sheet filed by Economic Offences Wing last year pegged the scam at ₹2,043 crore. The Enforcement Directorate has attached property worth ₹900 crore so far. After a meeting with NHB officials in New Delhi this week, Mr. Somaiya said the NHB will also probe other complaints where home buyers have been misled under similar schemes. The BJP delegation met officials of the Union Ministry of Housing, Home Affairs also and said thousands of buyers are suffering because of the scam. They have even received ‘threat’ notices from the finance companies for payment of EMI and repayment of loans. “The NHB has agreed to take the cases related to misuse of housing subvention schemes very seriously. I have on June 11 held meetings with the home buyers and forwarded their concerns to RBI, Police, and Real Estate Regulatory Authority,” Mr Somaiya said. Mr Somaiya said he has received thousands of complaints from buyers in Mumbai and Pune about non-transparent implementation of the so-called subvention schemes of housing finance. “For the last couple of years, such misleading advertisements by real estate developers in connivance with the financial institution have come to light in Maharashtra. Under these schemes, the buyer pays up to 5% and the balance 95% is funded by the HFCs (Housing Finance Companies)/NBFC (Non Banking Finance Companies). The disbursement is done to the developer directly and the EMI/interest until possession is borne by the developer,” he said. explaining the fraud. Mr. Somaiya asked the NHB officials to take steps to ensure that this non-transparent presentation and financing in the name of subvention be stopped immediately. The BJP delegation also demanded that home buyers be not penalised to repay the amount through EMI if the housing finance is extended in connivance with the builder. In the DSK case, ‘ghost transactions’ were created by the developer in connivance with the lender to dupe innocent purchasers, the delegation said.