Wednesday, November 24, 2010

Central Bank General Managers arrested for Loan Scam - - 24 Nov 2010

New Delhi: The CBI has arrested eight people including senior executives of different banks whose executives gave loans to private builders in exchange for bribes.

Among those arrested: the Chief Executive Officer (CEO) of LIC Housing Finance; the General Manager of Central Bank of India; the Deputy General Manager of Punjab Bank in Delhi; and the Chairman and Managing Director (CMD) of Money Matters.

The CBI conducted raids in five different cities - Mumbai, Delhi, Chennai, Jaipur, Kolkata and Jalandhar - at the offices of several firms that finance housing including LIC. (Read: CBI Statement)

"A private financial services company, its CMD and other associates were allegedly bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans. They were also gathering confidential business information from financial institutions," said the CBI.

The private financial services company, Money Matters, was allegedly "acting as mediators and facilitators for corporate loans and other facilities from financial institutions. "

Five separate cases have been registered, said the CBI.

During the day, the news of the raids and the arrests hit the stock prices of LIC Housing Finance and Central Bank.

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