V K Sharma appointed LIC Housing CEO after Nair's arrest

LIC Housing Finance today announced the appointment of V K Sharma as the new chief executive after RR Nair's arrest by the CBI in connection with the multi-crore housing loan fraud.

Sharma heads the LIC's southern region operations in the country.

The Central Bureau of Investigation (CBI) on Wednesday arrested some top officials of a number public sector banks and financial institutions on allegations of sanctioning loans in return for cash rewards. The arrested officials included LIC Housing Finance CEO R Ramachandran Nair.

According to CBI sources, Nair yesterday confessed to aiding DB Realty and Jaypee Group in the scam. He also hinted at the involvement of other officials in the whole process.

Meanwhile, CBI director Balwinder Singh has flown into Mumbai to take stock of the situation. According to the CBI, the five firms that are allegedly involved, availed loans, which they in turn invested in stock markets. A total of Rs1,000 crore was advanced to these firms.

The board of Money Matters, the financial services firm accused in the fraud, is set to meet today to discuss the future course of action. Sources say, Money Matters CMD Rajesh Sharma allegedly received a commission to fix the LIC-Welspun Gujarat deal.

On 18 April, LIC bought a 7.5 per cent stake in Welspun in a deal allegedly fixed by Money Matters. Welspun, however, has denied its involvement in any such dealing.