DEAR VIEWERS,
After giving a clean chit to former Life Insurance Corporation (LIC) of India chairman and now managing director T S Vijayan in the bribes-for-home loans scam, the CBI has initiated a fresh probe against him.
This time, on allegations of favouring corporate houses, including Shahid Balwa’s DB Realty, by investing LIC money in their public issues or borrowings. Records show that the Economic Offences Wing of the CBI in Mumbai registered a preliminary enquiry on June 27 against Vijayan and Thomas Mathew, another managing director with LIC, and two other senior executives for “misconduct” in investing LIC money.
“The suspect persons, in connivance with other unknown persons, exposed the funds of LIC of India by investing in IPOs of various companies which were against the investment policy of LIC of India,” says the PE.
The companies mentioned: JP Infratech, JSW Energy, Bajaj Hindusthan, Shree Renuka Sugars, DB Realty, Varun Shipping, Exide, Areva T&D, JSW Steel, Apollo Hospitals and BASF India. The CBI does not spell out what were the alleged deviations from the norms.
When contacted, both Vijayan and Thomas Mathew said they did not discuss the investment policy or deviations.
“I’m not aware of the preliminary enquiry filed by the CBI. I’m on leave now,” said Vijayan. “I have no idea about this case. I have nothing else to say,” said Thomas Mathew.
The other LIC executives named in the PE are Executive Director (Investments) N Mohan Raj and Chief (Investment) B Venugopal. LIC officials said the CBI’s move was a surprise since there were three Finance Ministry nominees on the state-owned insurer’s board.
“Did they not know about these investments and raised objections then?” said a source. They said that investments made are reported to and decided by LIC’s investment committee, which is a subcommittee of the board of LIC and meets almost every month.
“Big investments have to be decided by the sub-committee unanimously. The investment committee consists of members from the finance ministry and heads of banks and other financial institutions and the investment policy is reviewed by the board of LIC every six months,” the source said.
Vijayan was denied an extension when his five-year term as LIC chief came to an end on May 2 because of allegations of involvement in the bribes-for-loans scam involving LIC Housing Finance.
Mid-June, the CBI absolved Vijayan as it did not find any evidence of the complaints leveled against him in the bribes-for- home loans scam, said a CBI official.
Last November, the CBI arrested Ramchandran Nair, who was then chief executive of LIC Housing Finance, and Naresh K Chopra, Secretary (Investment) at LIC, for allegedly accepting bribes to sanction big-ticket loans. Six senior executives at three public sector banks were also arrested
......EDITOR (source I.E.)
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