Housing Finance scam

After effects of the so-called housing finance scam have been able to keep the stock market under a nagative pressure. Panick selling and confused buying in stocks of reality, Financial institutions, banks ended the day 2 with another nagative note taking Nifty to 60 points down.
This treand may continue tomorrow as the nagative news surrounding the scams almost made the market volatile. As we know that sensitive index is too senstive to react to domestic as well as international news, hence it is time to apply prudence and act wisely while trading in stocks, commodities, derivatives.
CBI has been playing a central role this time in the housing finance and credit scam while CAG played its role in busting the telecom spectrum scam. Arrests of 3 top executives have been made by CBI and it raided the offices of the companies who have been involved in the so-called scam. The names that have been higlighted are Life insurance company (LIC HOUSING FINANCE ), PNB, Central Bank of India, Bank of India, Money Matter, DB relaity and the list goes on.
Here the racket is all about sanctioning of large corporate loans and sharing confidential information to the clinets.  What we came to know from the information is  that the top executives of these big financial institutions like LIC, pnb, BoI, Central Bank, who had the power to snaction loan to the realty companies have been bribed by an intermidiary ( money matter )to both parties. CBI claimed that executives at the finance companies accepted bribes ranging from 7.5 lakhs to 45 lakhs from money matter to sanction huge loans to their clinets.
Db Relaity which  is a promoter of  swan telecom whose name was in the 2g scam is actively took part in the housing finance scam. It had also sold some stake to Etisalat recently. LIC CEO NAIR who was arrested was accused of bribery while money matter MD Rajesh Sharma has been charged by CBI. Though the major banks have clarified that there is no issue of assest quality only investigation can bring more truth to light.
As per CBI more arrests can take place and raid can been made. CBI lawyer claimed that a lobby of 15 banks are involved in sanctioning loans to companies such as Suzlon, Emaar MGF, Ashapura Minechem, BGR energy, OPG group, Jaypee group, Lavassa etc and Money matter has been the intermidiary in sanction of loan to these companies.
 Written By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 10,2011

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