The CBI on Wednesday addressed a press conference regarding arrests of eight officials of public sector banks and financial companies.Speaking to the press, CBI's EOW chief P Kandaswamy said the agency has busted a housing loan scandal racket and arrested CEO of LIC Housing, General Managers of Bank of India and Central Bank of India (New Delhi) and CGM of Punjab National Bank. Several other bank officials have also been arrested on bribery charges. The CBI said classified business information was also given out for favours.
The CBI also said officials of Money Matters have been arrested for broking bribery deals. The LIC secretary (investments Mumbai) too has also been arrested on bribery charges.
Reports suggest that the CBI has arrested
- Ramchandranan Nair (CEO, LIC Housing Finance Ltd, Mumbai),
- Naresh K Chopra (Secretary, Investment, LIC Mumbai),
- R N Tayal (General Manager, Bank of India, Mumbai),
- Mahinder Singh Johar (Director, Central Bank of India, New Delhi),
- Venkoba Gujjal (DGM, Punjab National Bank, New Delhi), and
- Rajesh Sharma, Suresh Gattani and Sanjay Sharma of M/S Money Matters.
Shortly before the stock markets shut trade for the day, talks of LIC Housing Finance being involved in a multi-crore scam surfaced sending realty and banking stocks spiralling down. The CBI, which was said to be questioning a slew of people involved in the scam, included officials from LIC Housing, Central Bank of India and a real estate developer, whose identity was not disclosed.Shares of LIC Housing dropped a record 18 percent to 1,070.2 rupees at the 3:30 p.m. close of trading in Mumbai. Money Matters fell by its 20 percent limit to 531.15 rupees. The benchmark Sensitive Index slumped 1.2 percent. DB Realty Ltd. and Orbit Corp. were among Indian real estate stocks that also dropped.