Home » Features » Events » 2010 Housing Loan Scam

2010 Housing Loan Scam

The Central Bureau of Investigation, on November 25, 2010, arrested eight officials including senior executives from different banks and financial institutions in connection with an alleged housing finance scam which involved various charges including bribery, corruption and illegal transfer of company sensitive secret information to outsiders.

The CBI has registered five cases in this regard.

November 25, 2010

  • The Central Bureau of Investigation (CBI) serves notices to 17 companies that had allegedly received loans from Indian public sector banks and financial institutions.
  • Planning Commission Deputy Chairman Motek Singh Ahluwalia said the scam is a 'very small' incident and no way could be linked as a problem of the banking industry as a whole.

November 24, 2010

  • The CBI arrests eight people including senior executives of different banks, whose executives gave loans to private builders in exchange for bribes.
  • Naresh K Chopra is arrested on charges of trading confidential information about LIC investments to Adani Group for Rs. 16 Lakhs. The Vigilance wing of the LIC is also simultaneously investigating on the issue.
  • R Gopalan, Banking Secretary said that the arrests were made on charges on individuals in personal capacity and that no norms of the company are being violated. He said the issue is not a large-scale scam.
  • The arrested include Ramchandran Nair, CEO of LIC Housing Finance Ltd., Naresh K Chopra, Secretary (Investment), LIC, Mumbai; R.N.Tayal, General Manager, Bank of India, Mumbai; Maninder Singh Johar, Director (Chartered Accountant), Central Bank of India, New Delhi; Venkoba Gujjal, DGM, Punjab National Bank, New Delhi; Rajesh Sharma, Chairman and Managing Director and two other officials of a Mumbai-based private financial services company.
  • Rajesh Sharma of Money Matters, Mumbai was arrested for bribing RN Tayal of Bank of India. Tayal is alleged to have taken a bribe of Rs. 25 lakh for which he extended favor of two loans worth Rs. 500 crore for two different companies. Suresh Gattani and Sanjay Sharma are the two employees of Money Matters who are also arrested.
  • Deepak Parekh of HDFC said that the issue is about some specific real-estate companies and developers and not related to the whole of the industry or the housing loan industry.

Comment on this story