A case of alleged mortgage fraud has surfaced, raising serious concerns about banking oversight and due diligence by financial institutions. A Qatar-based Indian national has filed a formal complaint with the Reserve Bank of India (RBI) against SBFC Finance, a loan sourcing partner of ICICI Bank Home Loans, accusing the firm of sanctioning a Rs 13 lakh home loan in his late father’s name using forged documents.

According to the complainant, Ayaz Parkar, the issue came to light in January 2024, just a month after the death of his father, Abdulwahab Parkar, 66, when recovery agents from SBFC Finance visited their Kalina residence demanding EMI payments and threatening property seizure. “We were completely unaware of any such loan taken by my father,” Ayaz told mid-day from Qatar. “When we contacted SBFC and ICICI Bank Home Loans for documents, what we received was horrifying.”

The paperwork listed a proprietorship firm named Green Bags as the loan applicant, with Abdulwahab, Ayaz’s brother, Ahmed Parkar, and his sister-in-law as co-applicants. Aadhaar and PAN cards were attached, but Ayaz alleges the signatures were forged. His brother, he says, was residing in Qatar between May and June 2022, when the loan was sanctioned, making any physical signing impossible. “How could a R13 lakh loan be approved on the same day as the application, without KYC or physical verification?” he asked.