This Article is From Nov 24, 2010

CBI statement on loan scam arrests

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

Here's the statement released by the CBI on the arrests:

The Central Bureau of Investigation has arrested Chief Executive Officer, LIC Housing Finance Ltd., Mumbai; Secretary (Investment), LIC, Mumbai; General Manager, Bank of India, Mumbai; Director (Chartered Accountant), Central Bank of India, New Delhi;  DGM, Punjab National Bank, New Delhi; Chairman & Managing Director and two other officials of a Mumbai-based private financial services company in a bribery case.

The CBI has busted a racket wherein 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. Officers of top management and middle management of various public sector banks and financial institutions viz. Bank of India, Central Bank of India, Punjab National Bank, LIC & LIC Housing Finance Ltd were receiving illegal gratifications from the private financial services company who were acting as mediators and facilitators for corporate loans and other facilities from financial institutions.  Searches were conducted at various locations in Mumbai, Delhi, Chennai, Jaipur, Kolkata and Jalandhar, which have resulted in seizure of incriminating documents.
In this regard, five separate cases have been registered and investigation is in progress.                

The arrested people are:

  • Shri Ramchandran Nair, Chief Executive Officer, LIC Housing Finance Ltd., Mumbai
  • Shri Naresh K Chopta, Secretary (Investment), LIC, Mumbai
  • Shri R.N.Tayal, General Manager, Bank of India, Mumbai
  • Shri Maninder Singh Johar, Director (Chartered Accountant) in Central Bank of India, New Delhi
  • Shri Venkoba Gujjal, DGM, Punjab National Bank, New Delhi.
  • Shri Rajesh Sharma, Chairman and Managing Director of M/s. Money Matters (India) Pvt. Ltd., Mumbai
  • Shri Suresh Gattani of M/s. Money Matters Group
  • Shri Sanjay Sharma of M/s. Money Matters Group 
.