lic housing finance news | lic housing finance ceo arrested | lic housing | lichfl

lic housing finance news | lic housing finance ceo arrested | lic housing | lichfl

MUMBAI — In a move that could shake up India’s real estate market, the chief executive of state-run mortgage lender LIC Housing Finance Ltd. and four other executives of state-run lenders were arrested Wednesday for allegedly receiving financial favors to grant large corporate loans.

lichousing.com
R. R. Nair, director & chief executive of Life Insurance Corporation Housing Finance.

LIC Housing Finance’s R.R. Nair and executives from Bank of India, Central Bank of India and Punjab National Bank have been arrested by the Central Bureau of Investigation, India’s top investigation body.

A private sector firm, Money Matters Group, was acting as a mediator to facilitate corporate loans, the CBI said. It added that three Money Matters executives, including its managing director, have been arrested as well.

“The CBI has busted a racket wherein a private financial service company, its MD [managing director] and other associates were arrested [for] bribing senior officials of public sector banks and financial institutions for facilitating large-scale corporate loans,” P. Kandaswamy, inspector general at the CBI’s Special Crime Branch, told a press conference.

The Reserve Bank of India recently expressed concerns over rising prices of real estate.

Posted by musicking on Nov 24 2010. Filed under Breaking News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry