New Delhi, Jan 23: The Supreme Court today issued notices to the Centre, Hudco, its former CMD D K Biswas, National Housing Bank and BJP leader Anant Kumar alleging arbitrary sanction of loans to the tune of Rs 14,500 crore during Kumar's tenure as union minister of urban development. The notice was issued by a bench of Justice S N Variava and Justice H K Sema on a petition by Centre for Public Interest Litigation. Filed through counsel Prashant Bhushan, the petition sought a thorough probe by an independent agency into "the process of granting and releasing funds so that the "erring officials and public servants can be suitably punished under the law".
Besides the Rs 14,500 crore loans, Rs 1,250 crore subscription was released in privately places debentures by Hudco and loans worth Rs 550 crore were written off by the respondents during 2002-03.
"These acts of respondents have caused grave loss to the public exchequer and resulted in further accumulation of non- performing assets in the country which is already more than Rs one lakh crore". The petition said.

The petitioner sought setting up of a high-powered expert committee to give suggestions to the court on the manner these "financial scams in the country can be stopped and huge non- performing assets be diluted".

Bureau Report