Court allows CBI to re-arrest 3 execs in loan probe

Court allows CBI to re-arrest 3 execs in loan probe

Mumbai:A special court on Saturday said it would allow Central Bureau of Investigation (CBI) to re-arrest three executives from a company implicated in a bribes-for-loan investigation.

The three officials from Money Matters Financial Services (MMFS) , including its chairman, were due to appear before the court later in the day and would be placed in police custody until Thursday, CBI prosecutor Eijaz Khan told reporters.

The federal investigator is probing 21 companies. It ordered the arrest of eight officials from banks and financial institutions last month for allegedly taking bribes in exchange for large corporate loans, or in some cases, sharing insider information.

All eight were granted bail on Friday.

But orders were issued to re-arrest the three Money Matters executives in connection with new charges against them in the bribes-for-loans probe.

The CBI accuses Money Matters of mediating and facilitating corporate loans and other facilities by bribing bank officials.

Also arrested last month were executives from Life Insurance Corp of India, LIC Housing Finance , Bank of India , Central Bank of India and Punjab National Bank .

The bribes-for-loans case is the latest in a wave of scandals to hit India this year, coming on the heels of an alleged telecom licence scam that forced the telecom minister to resign and has paralysed parliament for nearly a month.