Admitting to financial irregularities in the Housing and Urban Development Corporation (HUDCO) during the NDA regime, the Ministry of Housing and Urban Poverty Alleviation has informed the Supreme Court that it has asked the Corporation's CMD to identify the officials involved in the Rs 14,500 crore scam for taking necessary action against them.
While accepting all the recommendations of the Central Vigilance Committee (CVC), the ministry has also sought a CBI probe in two cases. While in the first case HUDCO had disbursed loans to a private firm, in the other it had invested money in four different bonds. However, with regard to the role of former Union minister, Ananth Kumar, the ministry has urged the Supreme Court to pass an appropriate order.
The Action Taken Report (ATR), submitted by the ministry, has been prepared by its Under Secretary S Mukherjee. The report states: "As regards to action in the case of the then minister Ananth Kumar, appropriate directions of the hounourable Supreme Court are solicited."
With regard to the CVC's recommendations to improve corporate governance, the ministry has asked the Department of Public Enterprise to issue instructions that will be applicable to all the PSUs. Also, HUDCO CMD has been asked to prepare a proposal to promote professionalism in the corporation. To unearth more irregularities, if any, the ministry has also decided to request the Comptroller and Auditor General to conduct a special audit regarding utilisation of fund borrowed by HUDCO from PSU banks.