Companies respond to CBI notices on loan scams
A majority of the 21 companies served notices by the Economic Offences Wing of the Central Bureau of Investigation in the cash-for-loans scam submitted their replies to the investigating agency on Thursday.mumbai Updated: Nov 26, 2010 01:53 IST
A majority of the 21 companies served notices by the Economic Offences Wing of the Central Bureau of Investigation in the cash-for-loans scam submitted their replies to the investigating agency on Thursday.
The CBI had on Tuesday issued notices to companies whose names had figured in the probe into irregularities by nationalised banks and financial institutions in sanctioning of loans to corporates.
P Kandaswamy, head of CBI's Mumbai Zone (II), said these were companies mentioned in the first information report (FIR). He refused to comment further.
The companies were asked to submit and explain documents on the loan transactions with banks as well as their correspondence with Money Matters, the financial services firm which is the link between the companies and the banks.
As the two-day deadline for a reply ended on Thursday,representatives of most firms handed in the documents at the EOW office in the city.
The CBI has so far arrested eight persons in the scam: Naresh K Chopra, secretary (investment), Life Insurance Corporation (LIC), Mumbai, Ramachandran Nair, director and CEO, LIC Housing Finance, Mumbai, RN Tayal, general manager, Bank of India, Chennai, Manindersingh Johar, director,
Central Bank of India, New Delhi, Venkoba Gujjal, deputy general manager, Punjab National Bank, Mumbai, Rajesh Sharma, chairman and managing director, Money Matters, Mumbai, Suresh Gattani, Money Matters, Mumbai and Sanjay Sharma, Money Matters, Mumbai.
A CBI officer said the agency is also in the process of freezing bank accounts of five bank and LIC officers who had been arrested. "They are recipients of cash," the officer said.