No respite for scam-tainted cos

The shares of companies involved in the multi-crore loan scam have declined for the third day in a row on the bourses. Money Matters Financial Services, DB Realty, BGR Energy, Hindustan Construction Company (HCC), Suzlon Energy and Bank of India have fallen in the range of 3-10% on the BSE.

The Central Bureau of Investigation (CBI) has arrested the Chief Executive Officer of LIC Housing Finance, Secretary (Investment), a General Manager, Bank of India, a director (Chartered Accountant) of Central Bank of India and a DGM of Punjab National Bank. The CBI also arrested Rajesh Sharma, chief investment officer of Money Matters group, which is at the centre of the scandal.

The CBI said in a statement that it has busted a racket wherein a the CMD and other associates of a private financial services company were allegedly bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans. They were also gathering confidential business information from financial institutions, the CBI statement added.

DB Realty and Money Matters Financial Services have frozen at the lower limit of 10% each. Both these stocks have shed more than 30% in the last two trading sessions. BGR Energy and HCC are down 5% each, while Suzlon Energy has dipped 4% on the BSE.