CVC for CBI probe into alleged loan scam in HUDCO

Last Updated: Wednesday, September 14, 2011 - 16:37

New Delhi: The Central Vigilance Commission
has recommended a CBI probe to unearth "criminal conspiracy" in an alleged loan scam in state-run HUDCO which led to a loss of Rs 50 crore meant for creating houses for people living
below the poverty line.

Officials said that certain irregularities on part of
unknown officials in the public sector unit in connivance with
private persons have resulted in a huge loss to the exchequer
and needed to be investigated.

"The Commission referred a case relating to
irregularities in sanctioning a loan by HUDCO to a firm which
has resulted into an non-performing asset with an outstanding
of Rs 49.17 crore for investigation from criminal angle to
CBI," a CVC official said.

The anti-corruption watchdog, after perusing a detailed report from HUDCO in this regard, agreed that there was gross violation of official procedures in granting a loan.
"In addition, there was lack of efforts on part of HUDCO
officials to realise the sum meant for creating houses for
people living below the poverty line," he said.

The official said that all relevant documents related to
the case were sent to the CBI and a preliminary enquiry may be
registered soon.

The Housing and Urban Development Corporation Limited or
HUDCO was incorporated in 1970 as a fully owned enterprise of
the Government of India with a social mandate to meet the
housing needs of the poor and disadvantaged sections of the

It also provides loan assistance to weaker sections at
subsidised interests rates and undertakes special projects for
such category of clients.


First Published: Wednesday, September 14, 2011 - 16:37

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