43,453 crore Loan Racket corruption by MONEY MATTERS broking Agency.– date- 24 November,2010
LIC Housing Finance and banks are suspected to have given fake loans to individuals which landed in the accounts of a few builders. The deals were supposed to have been arranged by FII-funded Money Matters Financial Services.The CBI said it busted out a racket where a private financial services company, its chairman and managing director (CMD) and other associates were bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans.Officers of top management and middle management of various public sector banks and financial institutions, Bank of India (BoI), Central Bank of India (CBoI), Punjab National Bank (PNB), Life Insurance Corp of India (LIC) and LICHF were receiving illegal gratifications
from the private financial services company who were acting as mediators and facilitators for corporate loans and other facilities from financial institutions, the CBI said in a release.
The investigation agency said it arrested R Ramchandran Nair, chief executive-LICHF, Naresh Chopra, investment secretary-LIC, RN Tayal, general manager-BoI, Maninder Singh Johar, director-CBoI, Venkoba Gujjal, deputy general manager-PNB as well as Rajesh Sharma, CMD-Money Matters and Sanjay Sharma and Suresh Dattani, both employees of Money Matters. All the eight arrester persons are remanded to custody till 29th November, CBI said.

Driven by high profits over the last few quarters, the LIC Housing Finance stock has been a spectacular performer over the last 20 months. From a low
of Rs178 at the end of March 2009, the stock had hit Rs1,496 on 29th September this year, a rally of over 1000%. Over the same period, market leader Housing Development Finance Corporation (HDFC) rose from a low of Rs223 to a high of Rs780, a gain of 350%.

Money Matters Financial Services Ltd.(Rajesh Sharma is chairman and MD ) which raised Rs-445 crores at Rs-625.25 per share in late October through Qualified Institutional Placement (QIP) from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO to supposedly to grow its asset financing business in November from four top foreign investors, has been under a CBI raid since last night.

Recently, IL&FS Milestone Fund had picked up a 74% stake in HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai for around Rs 575 crore. Interestingly, Money Matters Financial Services Ltd was the sole advisor to the deal. HCC’s promoter Ajit Gulabchand, who is setting up a controversial township called Lavasa near Pune, is known in market and business circles to be close to Agriculture minister Sharad Pawar.
The stock of Money Matters which was languishing at Rs7 in late 2007, jumped to around Rs120 in early January 2008 and fell to Rs50 in April 2009. Since then, it rose vertically all the way to Rs787 in the last week of October just after the QIP. Yesterday, the stock was quoted at Rs663.90.
What is today Money Matters, was incorporated as Daiwa Securities Limited on November 15, 1994. The Company’s name was changed to Dover Securities Limited on May 19, 1999 with its registered office at 501, Shubham, 1, Sarojini Naidu Sarani, Kolkata-70001. The registered office was shifted to 1-B, 1st Floor, Court Chambers, 35, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020. In March 2008, Dover bought over unlisted Money Matters Securities P Ltd. On 6th October 2008, the name was changed from Dover Securities Limited to Money Matters Financial Services Limited. Critics says that this has link with swan telecom 2G spectrum
Till now 28 account sealed of Money Matter, 3 exec. arrested, 1000 crore found in accounts (one account included 450 crore & another 100 crore .                                                                                      

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