India widens bank loan investigation
Saturday, 27 November 2010
MUMBAI, Nov 26, 2010 (Agencies): Indian federal investigators have announced today an inquiry into 21 companies in connection with a banking loans scandal.
Police arrested eight people, including senior executives of leading state banks, in Mumbai Wednesday on accusations of accepting bribes totalling more than 200 million dollars to facilitate large corporate loans to builders.
The arrests were the latest scandal to shake India's financial world, already reeling from a corruption controversy involving the cut-rate sale of telecom licences that cost the public treasury up to 40 billion dollars.
The Bombay Stock Exchange fell by 1.0 per cent as a result of the inquiry, analysts said.
Those arrested on Wednesday include senior figures from the Bank of India, the Central Bank of India and the Punjab National Bank.
Reports suggest that some of the loans were used to invest in the stock market and not the projects they were intended for.
The scandal follows the resignation of a government minister in a row over the issue of multi-billion dollar mobile phone contracts and alleged financial irregularities at the Commonwealth Games.
Police arrested eight people, including senior executives of leading state banks, in Mumbai Wednesday on accusations of accepting bribes totalling more than 200 million dollars to facilitate large corporate loans to builders.
The arrests were the latest scandal to shake India's financial world, already reeling from a corruption controversy involving the cut-rate sale of telecom licences that cost the public treasury up to 40 billion dollars.
The Bombay Stock Exchange fell by 1.0 per cent as a result of the inquiry, analysts said.
Those arrested on Wednesday include senior figures from the Bank of India, the Central Bank of India and the Punjab National Bank.
Reports suggest that some of the loans were used to invest in the stock market and not the projects they were intended for.
The scandal follows the resignation of a government minister in a row over the issue of multi-billion dollar mobile phone contracts and alleged financial irregularities at the Commonwealth Games.