The Central Bureau of Investigation (CBI) has begun investigation into the cash-for-loan case by digging out documents that were forged.
The probe agency was so far concentrating on the bribery angle in which it arrested five senior officers of three public sector banks and Life Insurance Corporation (LIC) of India and three from Money Matters, a financial services firm.
The CBI is now tightening the noose against the corporates who illegally availed big amount loans by paying bribes. This also means that the probe agency is in the process of registering cases of forgery and misrepresentation of facts against those found guilty. The CBI has, in its case records, hinted about misrepresentation of facts by some prominent companies.
A senior CBI officer, requesting anonymity, said all the documents seized during the raids and those called from corporates are being scrutinised to find out if any of them are forged or facts misrepresented.
The CBI had recently asked the corporates whose names figured during investigation, to submit documents on loan transactions with the three banks involved and LIC. "If we find forgery and misrepresentation of facts by any of the companies, we would charge them accordingly," the officer said.
He added that if it learns that the bank and LIC officers and three from Money Matters knew about the forgery and misrepresentation of facts, they would also be charged.
The officer said the agency has established in some cases that huge loans were sanctioned despite the companies not eligible for those amounts.
(Inputs from Vignesh Iyer)