2nd of the investigative series
By:Ravi Sinha
In the immediate aftermath of the bribes for loan scam involving LIC Housing Finance, the Finance minister Pranab Mukherjee in conjunction with Dept of Financial Services asked for a complete monitoring of all the companies mentioned in the CBI case filed. All public sector banks, financial institutions and state owned insurance companies have been asked to examine their exposure to the 21 companies named by CBI in the housing loan scam, and give a subsequent compliance report.
CBI has named Mantri Realty, Sigrun, Entertainment World, Indore City Treasure, Lavasa, Ashapura Minechem, BGR Energy, OPG Group, Krishna Group, Suzlon, Emaar MGF, MBDB, Gold Souk Project, JP Hydro, Adani Group, JSW Power, Religare, DB Realty, Pantaloons, Adalite and Mtech. Lavasa is already under environment ministry fire, while DB Realty is one of the beneficiaries of the 2G licensing scam and Emaar MGF built the CWG Village.
Finance Minister has instructed PSBs, DFIs and insurance companies to take appropriate action against the companies and individuals as per established procedure. All of them have been instructed by Dept of Financial Services secretary R Gopalan to examine their exposure to these errant companies.
They have also been told to undertake an independent valuation on the asset quality, documentation and compliance of their prudential requirements in all these companies. Instructions are also in place for fresh assessment of non-performing assets and strengthening and monitoring of the processes to identify incipient sickness.
All loans should follow procedures and diligence mechanism. Chairmen of PSB, FIs and insurance companies have been asked to give their compliance reports, as also rapid assessment on the portfolios mentioned in the CBI report.
