Builders sell mortgaged flats, shops without financier’s consent

Ahmedabad: A financing firm has accused two partners of a real estate firm of selling mortgaged flats and shops worth over Rs 2.5 crore without its consent. Navrangpura police on Saturday filed a case of cheating and breach of trust in the matter. The complaint was filed by the territory business manager of the home finance firm, who alleged that the accused had mortgaged several units in their project at Shilaj-Ambli in Nov 2023 and secured loans worth Rs 3 crore.

Police said the mortgaged properties included two ground-floor shops and several flats. The loan amount was disbursed into the builder firm’s bank account after mortgage documents and agreements were executed.

Investigators said the borrowers regularly paid instalments till Jan 2025, while one loan linked to one flat was fully repaid and closed. However, after defaults began in Feb 2025, the finance company initiated a legal review of the mortgaged properties.

A search report submitted by an advocate allegedly revealed that several mortgaged units had already been sold to third parties without obtaining the mandatory no-objection certificate (NOC) from the finance company.

Police said the properties were allegedly sold through registered sale deeds between July 2024 and June 2025 without informing the lender. The complainant alleged that the accused caused wrongful losses of Rs 2.54 crore, including pending dues, interest and related charges.