DDA Housing Commissioner Asma Manzar said on Tuesday that no allottee would get any leeway. “Their registration amount will be forfeited if they are unable to produce verifiable documents,” she said. “These people now say they never even signed up for the scheme but documents with which they registered seem genuine. Their PAN cards check out with the Income Tax list.”

In the event Singh and others like him are unable to produce genuine documents, “the banks (that loaned them the initial amount) would have to bear the loss,” Manzar said.

The banks are now expected to go after the borrowers with a vengeance.

Udit Raj, who moved the High Court alleging irregularities, had said on Monday that conmen had approached people in remote areas of Rajasthan, particularly those with predominantly SC/ST population, to fill certain forms that promised them a dream house in Delhi. Even as the Economic Offences Wing refuses to divulge much information, it is apparent that genuine documents were made in their names once these applicants furnished information.

“Yesterday I spoke to banks that were part of this scheme and they assured me that all legalities have been adhered to while sanctioning loans,” Manzar said. “They said all their records are in order.”

DDA’s public relations director Neemo Dhar also said the banks have told the agency that they followed the “know your customer” specifications.