11-25-2010, 11:27 PM
[url="http://www.rediff.com/business/slide-show/slide-show-1-lichf-chief-arrested-in-huge-housing-scam-now/20101124.htm"]A huge housing scam now! LICHF chief arrested[/url]
Housing scam involves Rs 42,750 cr
Quote:The Central Bureau of Investigation on Wednesday arrested the chief executive officer of LIC Housing Finance Ramachandran Nair and seven others, including three top officials of public sector banks, in connection with an alleged multi-crore housing finance racket.
Apart from Nair, those arrested are Naresh K Chopra, secretary (investment), LIC; R N Tayal, general manager of Bank of India (Delhi); Maninder Singh Johar, director (chartered accountant) of Central Bank of India; and Venkoba Gujjal, deputy general manager, Punjab National Bank (Delhi).
Rajesh Sharma, chairman and managing director of Mumbai-based firm Money Matters Ltd and two of its employees -- Suresh Gattani and Sanjay Sharma-- were also among those arrested, CBI said. Money Matters was allegedly acting as a middleman for loans.
The CBI has asked for a 15-day remand for those arrested in the case.
The officials allegedly colluded with the firm to sanction large scale corporate loans, overriding mandatory conditions for such approvals along with other irregularities.
The Union finance ministry, meanwhile, said it would explore the possibility of instituting a departmental inquiry into the housing finance racket that led to arrest of senior officials of the LIC Housing Finance and public sector bank
Housing scam involves Rs 42,750 cr