Loans bribery case limited to individuals: Minister

Loans bribery case limited to individuals: Minister

New Delhi: Minister of state for finance Namo Narain Meena said on Thursday that the loans bribery scandal that has led to several arrests is not a widespread scam and will not hit markets or the banking sector.

Eight top officials from Indian banks and financial firms were arrested on Wednesday on charges of taking bribes to grant corporate loans, dealing another blow to Indian markets already grappling with a multi-billion dollar telecom scam.

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The income tax department will look into tax issues in a loans bribery case, a finance ministry official said on Thursday.

“The IT (income tax) department will certainly look into any tax angle involved in the matter," the Central Board of Direct Taxes spokesman Shishir Jha told the news agaency.

Meanwhile, Suzlon Energy, developers Lavasa Corp and DB Realty were among companies named by Central Bureau of Investigation (CBI) in the bribery scandal.

The CBI said on Wednesday those arrested included the chief executive of LIC Housing Finance and senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India.

The investigating agency said the accused received bribes valued at hundreds of millions of dollars from private finance firm Money Matters Financial Services.