New Delhi, Jun 4 (IANS): The Economic Offences Wing of Delhi Police has arrested two persons for inducing financial institutions and banks by way of availing home loans from them by multi-mortgaging the same property and misappropriating the funds, an official said on Saturday.

The accused, identified as Amarjeet Singh (38) and Om Parkash Singh (39), cheated the financial institutions to the tune of Rs 2 crore.

Furnishing details, Joint Commissioner of Police (Economic Offences Wing) Chhaya Sharma said a case was registered on the complaint of Edelweiss Housing Finance Ltd.

As per the complaint, the complainant company had extended a loan facility of Rs 2,00,50,000 to the accused Om Parkash Singh as borrower. It was alleged that initially the borrower and co-borrower paid the monthly instalment amount as per agreed repayment schedule.

However, later accused persons stopped paying the monthly loan instalments. When company officials visited the mortgaged property for inspection, they found that the said property was under the physical possession of the Punjab National Bank under SARFAESI Act and the said property was found mortgaged with the PNB Housing Bank.

Accordingly, the police registered a case under relevant sections of law and initiated an investigation.

During investigation, it was found that the accused person used to cheat by way of transferring the sale-deed in the name of his relatives and then by obtaining housing loans by multi-mortgaging the said property with different financial institutions/banks.

The police received a tip-off about the accused duo's location and subsequently arrested both of them -- Amarjeet Singh on June 1 and Om Prakash on June 2.