No directions to cut real estate exp: Finmin

The Government on Friday said, it has not directed public sector banks to cut exposure in real estate following the housing-finance bribery scam.

 "No why should we say this," Financial Services Secretary R Gopalan told reporters when asked if the government has given such directions to the state-run banks.

The comments come in the wake of the housing-finance scam unearthed by CBI, which arrested the CEO of LIC Housing Finance, Ramachandran Nair, LIC Secretary (Investment) Naresh K Chopra and six other senior bankers in connection with a housing-finance racket.

CBI has also issued notices to 21 companies to provide all the documents related to the case and explain any benefits received by them as also favours extended to the accused persons.

Going by reports, the multi-crore scam could have a adverse impact on property prices, as lenders could tighten the norms for giving loans to realty players.