LIC Housing Finance Scam or a Bribery Case?

 

LIC Housing Finance Scam or a Bribery Case?

Government today said the housing finance racket unearthed by the Central Bureau of Investigation (CBI), leading to the arrest of the CEO of LIC Housing Finance and other senior officials of public sector banks, is a bribery case involving some individuals and is not a large-scale scam.

"It's an individual case of bribery. There is no large-scale scam. Banking system is sound," minister of state for finance Namo Narain Meena told reporters in the capital.

He added, "NPAs (non-performing assets) are minimal in housing loans -- less than 1%. There is no impact on asset quality of banks."

However, This is really difficult to believe that its really a bribery case and not the large scale scam. This is because everyone of us know that it is now the routine practice to bribe the bank loan officers to get approved for the loans.

In fact, in all the major cities of India, Builders, Business owners and even Individuals bribe 1-6% loan amount to the loan officer of the bank to get approved for the loan.

Than How can government say that it’s only a bribery case and not the large scale scam?

In my opinion, government should set an investigation committee to analyze the entire financial sector about this scam. This can be a large scale scam in which many banks and financial institutions may be involved.