CBI custody of LIC housing scam accused extended till Dec 3

A special CBI court on Monday extended till December 3 the CBI custody of eight persons including LIC housing finance CEO Ramchandran Nair, arrested for their alleged involvement in a cross-country housing loan racket.

While seeking further custody of the accused, CBI said they had committed a "white collar crime" and the "whole nation's economy was at stake".

According to CBI counsel Ejaz Khan, "A huge corruption has been unearthed wherein the figures are high. Five of the accused, who are public servants and trustees of public money, indulged in nefarious activities."

"Apart from the previous known beneficiary companies, the names of two more companies - BJN Hotels and Mercators Lines Ltd - have also come to the fore. One of the accused R N Tayal after receiving money from Rajesh (Sharma) showed official favours to these two companies," Khan said.

CBI had on November 24 arrested Nair, Naresh Chopra, secretary (Investment), LIC, R N Tayal, general manager of Bank of India (Delhi), Maninder Singh Johar, director of Central Bank of India, Venkoba Gujjal, deputy GM of Punjab National Bank (Delhi).

Rajesh Sharma, CMD of Mumbai-based firm Money Matters Ltd and two of its employees - Suresh Gattani and Sanjay Sharma - were also arrested.

All the eight accused were produced before the court today which extended their CBI custody after observing that the investigation is at a crucial stage and further scrutiny is necessary.