But amid a scourge of sticky loans and wrath against wilful defaulters, highstreet banks are taking a zero tolerance stand. Since banks rely on these reports by independent professionals, it amounts to a clear breach of trust and fraud if such reports are blatantly wrong. However, unless a bank actually commissions professionals under an arrangement, it may be difficult for the banks to bring an action against these professionals. In some cases title reports and other certificates are commissioned by the borrowing client rather than the lending back.“It’s evident lawyers and accountants cannot wriggle out easily by submitting false reports. "In quickening loan disbursal, such borrowers often hire professionals already on the bank panel of lawyers and CAs.
Source: Economic Times June 17, 2018 18:00 UTC