Musings of a convoluted mind: How such enormous fraud is possible?In December, 2002, I took a home loan from a major private sector bank. Later, I got it transferred to a public sector bank. Both the times I had to submit many documents, salary details, my wife's salary details, the papers related to the flat, papers related to society and also details of witnesses. I had to fill up lengthy forms. Both the banks inspected my flat. Although all the documents were photocopied by me, the banks charged processing fees and photocopying fees. It was a terrible process for me. Moreover, I had to take two insurances for taking this loan. I clearly understood that no person can commit fraud. I thought that the system of sanctioning loan was full-proof.
Now, when I hear about frauds of gigantic proportion, I simply think how is it possible. Didn't the bank follow those procedures which they follow at the time of sanctioning loans to common people? Or, is the procedure different for people taking loan amounting to thousands of crores of rupees?