Central Bureau of Investigation closes FIR against Repco Home Finance MD

Repco Home Finance Ltd has said that the Central Bureau of Investigation (CBI) has closed a First Information Report (FIR) registered against the finance company's managing director R Varadarajan and three others has been closed as "Mistake of Fact".

In a statement issued today, the company said that the CBI has submitted its report to the Court, requesting the Court to pass orders for closure of the FIR under mistake of fact as allegatons in FIR are not substantiated. The Court has accepted the request, it said.

The FIR was against Varadarajan, V Raghu, then executive director, K S Kannan, then chief manager and P Sekhar, then deputy general manager, Repco Bank, related to preclosure charges/penalty for the loan accounts of a firm named Durga Agencies. The FIR was registered on October, 2016 and sources from the company during then said that the issue was related to a Rs 60 million loan taken by Coimbatore-based Divya Agency, which has closed the loan in advance, said sources. While earlier there was a prepayment charges applicable, the company did not levy the charge.

However, National Housing Bank (NHB) has issued a rule in 2014, that the companies should not collect prepayment charges on advanced loan closure. The processing fees are also waived off if the loan is availed through special schemes, they said.