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The following article was published in our article directory on November 26, 2010.
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India's Financial Executives Take Bribes of Millions Were Arrested

Article Category: Business Management

Author Name: Amanda xzh

Accused of accepting more than state-owned financial enterprises of real estate companies, bribery, and illegal loans; this month, the third big pile of corruption

Continue to simmer in the telecom scandal occasion, India 24 and broke a scandal. The number of state-owned financial sector executives suspected of accepting hundreds of millions of dollars in bribes to a large-scale illegal loans to real estate companies.

Five executives have been detained

Responsible for investigating corruption and crime, the federal Central Bureau of Investigation, India 24, arrested five executives of state-owned financial enterprises, including the president of the Indian housing finance companies and the Central Bank of India, Punjab National Bank and Indian Bank's senior management.

Bureau of Investigation said they accepted bribes, illegal loans to a number of companies. Meanwhile, the three executives because of the private sector involved in the case were arrested. They will be held from July 29 to accept the investigation.

It is reported that illegal access to credit of the private sector most of the real estate business, there are several energy companies. But these companies claim that their loans are obtained through proper channels.

Survey co-head of Canda 25, Swami told reporters that this series of corruption cases from the amount of bribery involving hundreds of millions of dollars, a higher loan amount, but he did not disclose the specific amount.

According to reports, Bureau of Investigation last year, found a clue to the past year, the five cities in India, investigation and evidence collection. The survey found that five executives of state-owned financial enterprises through the listing of the "financial financial services company," the middleman, to the number of loans to real estate companies, while accepting their bribes. However, Central Bureau of Investigation did not reveal other bribery business.

Secretary of the Treasury to finance self-examination

25 Finance Minister Pranab Mukherjee issued a statement calling including banking, insurance and finance companies, including all financial institutions in the country, to re-examine the business dealings with these companies, and prompted one of the risk.

Scandal, involving the company's stock plunged, with India housing finance company's stock fell 18%. Indian housing finance company's parent company, the country's largest life insurance company insurance companies in India said in a statement, will be re-appointed home financing company executives.

This month, India's high-level corruption cases exposed in the third pile. November 9, India, Maharashtra Chief Minister illegal access to government Anju resign. 14, the alleged sale of 2G licenses to ultra-low prices so that the state suffered loss of nearly 1.77 trillion rupees, India's telecoms minister to resign.

"Damaged the image of Indian state-owned enterprises"

Some media analysts believe that India's state-owned banks and the financial and insurance institutions, in the Indian public has a high reputation, as a government background, is considered the most safe place. Exposure of the bribery case, will seriously damage the image of these institutions.

India's economic prosperity, thanks in part to the booming real estate development, real estate companies also make more use of intermediaries to persuade financial institutions, hoping to get more loans. Many of them violations.

Director of the Indian think-tank RPG Foundation of Kerr said: "All of these corruption cases brought to the national image of India is extremely negative impact, it is easy to lose confidence in the financial system."

However, considerable power within the Government of India Planning Commission that this is an isolated incident, deputy director of the Committee Ahmad Croix Maria said: "This is the entire banking system is concerned, is not big, I think our system has very good regulatory measures. "

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