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MUMBAI/NEW DELHI: In a cra

http://www.karmayo g.com/ngoarea/navi mumbai.htm

ckdown ona multi-crore kickbacks-forloan scam and trading insider information on companies, theCBI on Wednesday

arrested the CEO of LIC Housing Finance,Ramacha ndran Nair, andseven others including three senior executives of public sector banks and a LIC

executive.Nair and bankers Bank of Indiageneral manager R N Tayal, Maninder Singh Johar, achartered accountant and

part-time director on the board of Central Bank of India, andPunjab National Bank deputy general manager Venkoba Gujjal - have been accused

of pushing loans to companies in return for monetary benefits from executives of Money Matters, a Mumbai-based financial services company.In the

remand application, CBI mentioned that the bank officials and Money Mattersexecutives were working in tandem to provide loans and other

bank facilities to real estateplayers such as DB Realty, Mantri Realty, Lavasa, 'Emaar MGH', the Jaypee group, theKrishna group, the Gold Souk

project and Suzlon, among others.Rajesh Sharma, the head of Money Matters, and two of his colleagues Suresh Gattani andSanjay Sharma

- were among those arrested.LIC Secretary (Investment) Naresh K Chopra, also held, has been accused of passing oninsider information on

several companies to Sharma. Among others, Chopra allegedly passed on information on Adani, Jaypee Hydro, JSW Power, Religare,

DB Realty andPantaloon.A special CBI court remanded the eight persons to police custody till November 29. Officialssaid more bank executives

were being questioned as part of a nationwide probe into themulti-crore scam.Joint director of CBI incharge of economic

offences, K Kandaswamy, said the bank officialsare yet to quantify the scam amount but officials pegged it at over Rs 1,000 crore. The CBIhas

been investigating the case for over a year and recorded conversations between theaccused demanding kickbacks.Nair is alleged to have

received funds to purchase a flat at a discounted rate at SatelliteTowers, Goregaon (East) and also received Rs 45 lakh bribe.LIC's

Chopra is accused of receiving Rs 16 lakh from Rajesh Sharma through his associatesfor providing insider information on several companies.The

remand application also mentioned favours shown to Lavasa a private townshipproject undertaken by HCC Ltd near Pune. Johar

allegedly demanded Rs 37.5 lakh fromSanjay Sharma and Rs 30 lakh was deliverd for the undue favour he extended for arrangingloans for

the Lavasa project. Kandaswamy said CBI has registered five separate cases and will have to scrutinise over

alakh transactions before coming to a conclusion on the involvement of others.* Incriminating documents, 28 hard disks, 189 gold coins, gift

vourchers of Rs 4.97 lah andRs 12.12 lakh were seized from the office of Money Matters at New Marine Lines. In anotherraid carried out by the

income tax department on Tuesday, the department seized Rs 1 crorein cash.* Venkoba Gujal was paid Rs 7.5 lakh as reward for facilitating a

loan of Rs 50 crore to oneof the clients of Rajesh Sharma.* R N Tayal allegedly received Rs 25 lakh from Rajesh Sharma for purchase of a flat

inNew Delhi. Tayal had promised to help him in the matter of Ashapura Minechem, Rs 200 crorepower project of BGR Energy and Rs

300 crore power project of OPG.* DB Realty and LIC Housing Finance on Wednesday said they were not involved in themulti-crore

kickbacks-forloan scam.* Following the raids, the finance ministry said it had called for details from financialinstitutio ns.* In a separate

statement, LIC Housing Finance said all procedures and due diligenceconsisten t with boardapproved guidelines were

adhered to while approving the loans. Inaddition, it said the loans were secured by assets and were in line with regulatory norms.* Vinod

Goenka, chairman of DB Realty, said, "We were busy preparing for our IPO a yearago. At the same time we wanted to submit loans for four

projects inMumbai. These wereall construction loans. Since my staff was busy with the IPO, we decided to hire Money Matters to

arrange for this loan amounting to Rs 200 crore. DB agreed to pay a 1.25% fee toMoney Matters to get the loan sanction from any financial

institution or bank and synidicatethis loan for us. The application for the loan was made in November 2009 to LIC Housing,the sanction came in

January 2010 and the amount was disbursed in March 2010 with arate of interest fixed at 13.5%."* He added, "We paid Money Matter's fee by

cheque. How they dealt with the bank orwhether they gave gratification, we don't know. There was no undue advantage given

to us.There was no hanky panky."

Read more:CBI arrests LIC officials, bankers in multi-crore housing scam -

The Times of India http://time sofindia.indiati mes.com/india/ CBI-arrestsLIC-

officialsbankers-inmulti-crorehousingscam/articlesho w/6983231.cms

#ixzz1CzZWAo HX 2
nd

Loan scam: CBI arrests top govt officialsNDTV Correspondent, November 24,

2010The CBI on Wednesday arrested CEO of LIC Housing Finance Ramachandran Nair and seven othersincluding three top officials of public sector banks

whose executives gave loans to private builders inexchange for bribes.Apart from Nair, those arrested are Naresh K Chopra, Secretary (Investment), LIC, R N Tayal,

GeneralManager of Bank of India (Delhi), Maninder Singh Johar, Director (Chartered Accountant) of CentralBank of India, Venkoba Gujjal and Deputy

General Manager of Punjab National Bank (Delhi).(Read: TheCBI statement) Rajesh Sharma, Chairman and Managing Director of Mumbaibased firm Money

Matters Ltd and two ofits employees Suresh Gattani and Sanjay Sharma were among those arrested, CBI said.(Also read:Loan scam: Banking, realty stocks

tank) The officials allegedly colluded with the firm to sanction large scale corporate loans, overridingmandatory conditions for such approvals along with other

irregularities.(Also read: Late selloff hitsstocks, Sensex falls 231 points) "Officers of top management and middle management of various public sector banks and

financialinstitutions viz. Bank of India, Central Bank of India, Punjab National Bank, LIC and LIC Housing FinanceLtd were receiving illegal gratifications from

the private financial services company who were acting asmediators and facilitators for corporate loans and other facilities from financial institutions,"

CBIspokesman R K Gaur said in a statement.A private financial services company, its CMD and other associates were allegedly bribing seniorofficials 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."These are clear cases of bribery and corruption by people working in the public sector. Land prices inurban areas

have sky-rocketed and developers need large sum to buy them. So bribing officials forquick and huge loans is an easy option," said HDFC chairman Deepak Parekh.The

CBI has registered five separate cases in this regard and investigation is in progress, the spokesmansaid.Shar es of LIC Housing dropped by
Rs.

239, or 18.32 per cent, on Wednesday to close at

Rs.

1,068.55.Read more at:http://profit.ndtv.c om/news/show/hom e-loan-scam-cbi-

arrests-lic-housingceo-124034?cp

lic scam
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