The Centre submitted before the Supreme Court that it had decided to seek its advice,  whether former Union minister Ananth Kumar should be prosecuted for his alleged role in the HUDCO scam.

It also submitted that it had directed the urban development ministry to institute a CBI probe to unearth the alleged corruption in sanctioning a huge loan to Hyderabad-based Shrishakti Resorts Hotels and a departmental probe in other cases of loans in the Rs 14,500 crore HUDCO scam, that surfaced during the NDA regime. BJP leader Mr Ananth Kumar was its minister then.

Filing its response to the notice issued by the apex court, the urban development ministry said, “In  case of Shrishakti Resorts and Hotels Ltd, Hyderabad, it has been decided to accept the recommendation of CVC regarding registration of a criminal case by the CBI. The matter has been referred to the Department of Personnel and Training for further necessary action on September 9, 2007.”

“In case of the then urban development minister Ananth Kumar, the CVC has recommended that the court may kindly issue appropriate directions. Accordingly, it has been decided to seek the directions of the court in this regard,” said the application.

In 2005, acting on a PIL filed by Centre for Public Interest Litigation (CPIL), the apex court had ordered a probe by the Central Vigilance Commission (CVC) on the alleged move to sanction loans over Rs 14,500 crore by the HUDCO.

The Central Vigilance Commission submitted its report. Based on this, in July 2007, the court had asked the government to initiate action against officials of the HUDCO who had advanced loans worth Rs 14,500 crore to certain private firms, bending rules during the previous regime.

The court had observed that it could order for a CBI probe if required, on the next date of hearing.

“During the tenure of Ananth Kumar, the HUDCO launched ‘Take out finance’ and extended loans to some dubious companies. Some of them are-J P Greens Ltd based in Noida, Calcutta Electric Supply Company Ltd, Sanghi Industries Ltd, Shrishakti Resorts and Hotels Ltd, Delhi based Hyderabad and Jaypee DSC Ventures Ltd,” said the CVC report filed before the court.

The report also added that the vigilance audit report had unearthed a series of irregularities and instances of deviation from lending norms, with respect to amounts advanced to the firms.