CBI has filed a case of corruption, cheating and conspiracy against the Managing Director of Repco Housing Finance Limited and three other top officials besides two persons of a partnership firm and seized incriminating documents in searches.
"Based on a reliable information CBI, Anti-corruption branch, Chennai registered a case of conspiracy, cheating and corruption against Managing Director of Repco Housing Finance Ltd (RFHL)," an official release said.
Managing Director of Repco Housing, R Varadarajan was also the retired MD of Repco Bank.
Executive Director and Chief Manager of RHFL, V Raghu and K S Kannan respectively besides DGM, Repco Bank, Sekar have also been booked.
Shanthamani alias Shanthi, and Thirumalaisamy alias Thambu partners of a Coimbatore based partnership firm dealing in textile machinery spare parts and real estate have also been booked.
"The CBI has conducted searches at various places at Chennai and Coimbatore and seized incriminating documents. The investigation is in progress", the release said.
According to CBI, during 2005 and 2008, the firm availed loan from Repco Bank to the tune of Rs 3.70 crores which became Non Performing Asset and the loan was closed during 2010.
"While closing the loan, the accused public servants favoured the (accused) company by waiving off the penalty amount of Rs 24.31 lakhs." During 2013, pre-closure charges of Rs 22.64 lakhs for another loan account was again waived off by the accused offiaials causing gain to the same borrowers and loss to the bank, the CBI said.
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