No bar on banks lending to realty sector

Finance Minister asked lenders, which have exposure to an estimated over Rs 1,000-crore in dubious deals unearthed by CBI, to ensure their money is safe.

Allaying fears of home loan seekers and realty players, Financial Services Secretary R Gopalan told reporters that the government has not directed banks and financial institutions to cut down on their exposure to the sector.

“No, why we should say this,” Gopalan said when asked if the government has directed PSU banks to reduce their exposure to the real estate sector.

Major realty players put up a brave front to dispel the rumours that scam would bring down the prices in the sector.