The Supreme Court on Tuesday asked the government to initiate action against the officials of the Housing and Urban Development Corporation (HUDCO), who according to the findings of the Central Vigilance Commission (CVC),  had extended loans worth Rs 14,500 crore to some private firms bending rules during the tenure of National Democratic Alliance regime.
After the submission by petitioner’s Counsel Prashant Bhushan, a bench headed by the Chief Justice directed the government to take action against the officials of the Housing and Urban Development Corporation , a public sector unit engaged in extending housing loans, to take appropriate action. While adjourning the matter for 8 weeks, the court observed that it might order for a Central Bureau of Investigation probe if needed on the next date of hearing.
Entitlement
The report said: “The commission recommends initiation of appropriate disciplinary action against officials who were involved in the use of facilities beyond their entitlement and for not keeping proper log books and other records.”
“As regards the action in the case of the then Minister, Ananth Kumar, the court may  issue appropriate directions,” said the report leaving the court to decide on the action.
During the tenure of the then Union Urban Development Minister Ananth Kumar,  Housing and Urban Development Corporation extended loans to some dubious companies — J P Greens Limited, Noida, Calcutta Electric Supply Company Limited, Sanghi Industries Limited, Shrishakti Resorts and Hotels Limited, Hyderabad and Jaypee DSC Ventures Limited, Delhi and many other firms, said the Central Vigilance Commission report filed before the court.
Talking about the misuse of power by Kumar during his tenure between September 1, 2001 and July 12, 2003, the report said the Housing and Urban Development Corporation had paid Rs 3,33,593 towards the mobile phone bill of the former minister and his personal staff, Rs 4.97 lakh towards the salary and overtime of an ITDC cook, who worked at his residence, Rs 14.25 lakh toward taxi bills from Ashok Travels and Tours.
The Housing and Urban Development Corporation also had provided four taxis at his Bangalore office and residence for which the corporation paid Rs 9.85 lakh.
“In addition to the payment for hiring taxis and information received from the Ministry of Urban Development reveals that 8 staff cars were also provided by the Public Sector Units and various other attached offices to the personal branch of the minister.”
“In the vigilance audit report, the number of irregularities and deviations from lending norms were observed with respect to amounts advanced to these firms,”said the report.
The report said, “There is adequate prima facie evidence that undue favour has been extended by the Board of directors and some other officials of the Housing and Urban Development Corporation in sanctioning a credit facility to some ineligible firm with bad track record and doubtful financial viability.”
In 2005, acting on a Public Interest Litigation filed by Centre for Public Interest Litigation (CPIL), the Apex Court ordered a probe by the Central Vigilance Commission (CVC) on the alleged sanctioning of over Rs 14,500 crore loans by the Housing and Urban Development Corporation.