New Delhi:  The Central Vigilance Commission (CVC) has recommended a CBI probe to unearth "criminal conspiracy" in an alleged loan scam in state-run HUDCO which led to a loss of Rs 50 crore meant for creating houses for people living below the poverty line. Officials said that certain irregularities on part of unknown officials in the public sector unit in connivance with private persons have resulted in a huge loss to the exchequer and needed to be investigated.

"The Commission referred a case relating to irregularities in sanctioning a loan by HUDCO to a firm which has resulted into a non-performing asset with an outstanding of Rs 49.17 crore for investigation from criminal angle to CBI," a CVC official said.

The anti-corruption watchdog, after perusing a detailed report from HUDCO in this regard, agreed that there was gross violation of official procedures in granting a loan.

"In addition, there were lack of efforts on part of HUDCO officials to realize the sum meant for creating houses for people living below the poverty line," he said.

The official said that all relevant documents related to the case were sent to the CBI and a preliminary enquiry may be registered soon.

The Housing and Urban Development Corporation Limited or HUDCO was incorporated in 1970 as a fully owned enterprise of the Government of India with a social mandate to meet the housing needs of the poor and disadvantaged sections of the country.

It also provides loan assistance to weaker sections at subsidized interests rates and undertakes special projects for such category of clients.

"The Commission has gone through the case and found sufficient evidence which indicates violations by unknown HUDCO officials. There was a criminal conspiracy on part of government servants and private persons. CBI is looking into the case," the official said.

The action came after a series of complaints were filed related to working of the public sector enterprise while granting or releasing loans to develop houses.

"We are examining other complaints of financial and managerial irregularities in the works executed by HUDCO," he said.