LIC Scam: LIC Housing Finance CEO Arrested With Top Government Bankers

The Central Bureau of Investigation (CBI) on Wednesday arrested top officials from some leading PSU banks and public/private financial institutions. The agency alleged a big housing loan scam involving top officials of some financial institutions.

Those arrested include Ramchandran Nair, Chief Executive Officer, LIC Housing Finance Ltd. ,Naresh K Chopta, 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 & Managing Director and two other officials of a Mumbai-based private financial services company in a bribery case.

The CBI FIR states that the Central Bank staffer was asking for Rs 37 lakh bribe.

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.

Money Matters Financial Services touched a 52-week low of Rs 575. At 12:25 hrs the share was quoting at Rs 615.00, down Rs 53.5, or 8% on the NSE.