CBI conducts search in Repco Home Finance premises

The Central Bureau of Investigation (CBI) has conducted search in the residences and offices of various senior officials of Repco Home Finance Ltd, including its managing director, on allegedly favouring some customers with waiver of certain charges.

According to sources, the raids were conducted related to a case filed against the senior officials alleging that they have favoured a Coimbatore-based customer by waiving off some charges.

Sources from the company said that the issue is related to a Rs 6 crore loan taken by Coimbatore-based Divya Agency, which has closed the loan in advance, said sources. While earlier there was pre-payment charges applicable, the company did not levy the charge.

However, National Housing Bank had issued a rule in 2014, that a company should not collect pre-payment charges on advanced loan closure. The processing fees are also waived off if the loan is availed through special schemes and this has also been part of the case.

Company sources, on condition of anonymity, said that the processes are according to the regulations and the particular loan has been fully closed without any outstanding.