“It is still under our control, but if we receive complaints of this type, we will examine and investigate them properly,” said SS Mudra, deputy governor of the Reserve Bank of India.

Phantom loans can be fictitious loans recorded on the books, or these can arise when the registered borrower takes them out at the request of the actual borrower.

“The problems in the housing sector are being looked into by the National Housing Bank, but depending on the housing sector loans go… the Reserve Bank of India has its eyes set on. There aren’t many such complaints. The percentage of non-performing assets in the mortgage portfolio is the lowest. The Reserve Bank of India said there was no reflection of excessive stress.

“The practice of builders buying properties from intermediaries has been around in the North for over a decade,” said Anil Sachitanand, Managing Director and CEO of Aspire Home Finance.

“The financing possibilities for a mortgage developer are limited to NBFCs, banks and FDIs from private equity. They subscribe the property to an intermediary who sells it at the right time to individuals. Individuals don’t want to buy a property when it doesn’t exist.