In a series of scams that have been plaguing the country, the latest one to be unearthed today is a housing scam in which several public sector banks and a leading financial services firm have been implicated.
The Central Bureau of Investigation, India's premier investigating body, has arrested at least eight officials from banks and financial institutions on charges of taking bribes to grant large corporate loans.
This included the CEO of LIC Housing Finance Corporation Ramachandran Nair and also Rajesh Sharma, the CEO of Money Matters Financial Services, a financial services firm, on the charges that they intermediated these loan. The others arrested include Central Bank of India director Maninder Singh Johar, Punjab National Bank deputy general manager Venkoaba Gujjal, Bank of India general manager RN Tayal, LIC Secy (Investment) Naresh Chopra.
The investigative agency also raided offices of the company in New Delhi, Mumbai, Kolkata, Delhi and Jalandhar.
Five separate cases have been registered and investigations are on, CBI said in a press conference, according to reports. It hasn't put up a figure to the size of the scam.