The Enforcement Directorate (ED) will launch a probe into the housing loan scam unearthed by the Central Bureau of Investigation (CBI) to check possible money laundering.
Official sources said the CBI has registered cases against top officials from banks and financial firms under various sections of the Prevention of Corruption Act, which fall under scheduled offence of the Directorate.
Sources, however, ruled out any immediate investigation into the case that saw arrest of top officials on charges of taking bribes for granting loans to corporates.
"The ED will move in as corruption falls under the schedule offence under the prevention of money laundering act (PMLA). However, the Directorate will not immediately step into the probe," a source said.
The CBI had on November 24 arrested LIC Housing Finance CEO Ramachandran Nair, LIC Secretary (Investment) Naresh K Chopra, CMD of Mumbai-based firm Money Matters Rajesh Sharma and five other bank officials on allegations of involvement in housing finance racket.
The Finance Ministry had said that the housing scam is a bribery case involving some individuals and not a large-scale scam. It had also said that the Income Tax Department too will join the probe into the scam.
The CBI has already sought explanation from private companies who benefited from the alleged cross-country housing loan racket.
D B Realty, Adani and a few other companies have already sent their representatives with relevant documents.
The beneficiary companies include M/S Lavasa, Pashmina Ltd, Mantri Realty, Sigrun Ltd, Entertainment World, Indore City Treasures, Ashapura Minechem, BGR Energy, OPG Group, Adani, J P Hydro, J S W Power, Ralligear, Pantaloon, Adalite and MTECH.
