Mumbai: In fresh trouble for Life Insurance Corporation of India, the CBI has initiated a probe against its Managing Director T S Vijayan for allegedly misusing his official powers to favour corporate firms.

"A Preliminary Enquiry (PE) has been registered and probe is being conducted against Vijayan, Thomas Mathew, another managing director and two senior executives of LIC for alleged misconduct while investing LIC money in public issues or borrowings of other companies," a senior CBI official said.

Efforts to contact a spokesperson of the LIC failed as there was no response from his office and his mobile phone was switched off.

Although Vijayan was given a clean chit in the earlier case, he is now accused of allegedly exposing the funds of LIC by investing in IPOs of companies which are against the investment policies of LIC.

"Some of the companies are Shahid Balwa's D B Realty, JSW Energy and JP Infratech. We have asked for all related documents and are examining them," the CBI official said.

The other LIC executives named in the PE are the then Executive Director (Investments) N Mohan Raj and Chief (Investment) B Venugopal. Efforts to contact Raj failed as his office maintained that he was in a meeting.

Last November, the Economic Offences Wing of CBI had arrested LIC Housing Finance Chief Executive Officer Ramchandran Nair, LIC Executive Secretary (investment) Naresh Chopra and several other public sector bank officials for receiving kickbacks in the loan scam.

According to the CBI, the LIC and bank officials had allegedly colluded with the owner of private firm Money Matters, Rajesh Sharma, to sanction large loans to housing firms, overriding mandatory conditions for such approvals.

They were also gathering confidential business information from financial institutions, the CBI had said.

(Agencies)