Money & Banking

Realty cos may face fresh case in LIC loan scam

PTI Mumbai | Updated on January 03, 2011 Published on January 03, 2011

CEO of LIC Housing Finance Ramachandran Nair(R) being produced in a court after his arrest by the CBI in connection with home loan scam, in Mumbai on Monday.   -  Business Line

Probing into the kickbacks-for-loans scam, the CBI today claimed that private realty companies were aware of the fraudulent measures by which loans were secured for them from the LIC Housing Finance and may register a fresh case against some of these firms.

Investigating the multi-crore LIC Housing Finance scam, the CBI claimed to have found some documents and statements by few arrested officials which were indicative of some of these companies having knowledge of alleged malpractices being indulged into for getting the loans.

CBI had on November 24 arrested LIC Housing Finance CEO Ramchandra Nair, Naresh Chopra, Secretary (Investment) LIC, R N Tayal, General Manager of Bank of India (Delhi), Maninder Singh Johar, Director of Central Bank of India, Venkoba Gujjal, Deputy GM of Punjab National Bank (Delhi) in connection with the case.

The agency had also arrested Rajesh Sharma, chairman and managing director of city-based firm Money Matters and two of his employees — Sanjay Sharma and Suresh Gattani.

According to CBI, the LIC and bank officials colluded with Sharma’s firm to sanction large loans to housing firms, overriding mandatory conditions for such approvals. They were also gathering confidential business information from financial institutions.

“We are examining loan details of all the 21 beneficiary companies. Irregularities were found in the papers of certain reality companies. These companies were aware of fraudulent measures undertaken by Rajesh Sharma to secure the loans,” a senior CBI official said.

All the documents and a final report has been sent to CBI headquarters in Delhi for approval to lodge a separate case against these companies, the official said.

According to CBI, D B Realty had secured a loan of Rs 200 crore and Lavasa had got a loan of Rs 400 crore. Nair was given Rs 45 lakh by Rajesh Sharma in November last year and in turn Nair had showed undue favour to D B Realty.

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Published on January 03, 2011
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