Loan racket a bribery case, can't be called a fraud: CBI

MUMBAI: The CBI on Friday said the cross-country housing loan racket involving top officials of public and private sector financial institutions can be called a case of bribery and corruption but not of fraud at the moment.

"I would like to clarify as some channels had reported it (racket) as a fraud. It is not a fraud case as on today. Later, investigation may reveal that but as on today it is primarily a case of bribery and corruption," CBI Special Director Balwinder Singh told reporters.

Singh, who flew here to enable coordination between different branches, said the CBI will not be calling any company right now and will scrutinise the documents first.

The CBI had yesterday sought explanation from private companies who benefited from the alleged cross-country housing loan racket.

The agency had on November 24 arrested eight persons and alleged that officers in the top and middle level management of various public sector banks and financial institutions including Bank of India, Central Bank of India, Punjab National Bank, LIC and LIC Housing Finance Ltd were receiving illegal gratification from a private financial services company 'Money Matters'.