'Action against bureaucrats involved in HUDCO scam'

New Delhi, July 17: The Supreme Court today directed the Central Government to take appropriate action on the report of the Chief Vigilance Commissioner (CVC) against those politicians and bureaucrats allegedly involved in huge loot of the Housing and Urban Development Corporation (HUDCO) funds.

Prashant Bhushan, counsel for the petitioner organisation centre for Public Interest Litigation, contended before a bench comprising Chief Justice K G Balakrishnan, Justice R V Raveendran and Justice Dalveer Bhandari that loans worth Rs 5300 crore were sanctioned in one day without any financial appraisal of the parties who were given loans and a former Minister, the Managing Director of HUDCO, and other officials and politicians were involved in open loot of the public money and loans were being sanctioned in gross violation of the rules and for commission.

The Chief Vigilance Commissioner has recommended departmental action against some and criminal investigation against others. The CVC has also recommended some steps and guidelines to plug in the loopholes being taken advantage of by the corrupt public servants to loot Public Sector Undertakings on large scale.

The court adjourned the hearing of the petition by 8 weeks.

Additional Solicitor General Vikas Singh however, defended the HUDCO officials.

The CVC submitted its report to the Apex Court on March 27 and was directed to conduct an investigation and to suggest measures to plug the loopholes to improve corporate governance in the country.

UNI