Loans were sanctioned by the Housing and Urban Development Corporation (HUDCO) in an arbitrary manner, and funds were misused during 2003, under the watch of then Urban Development Minister, Ananth Kumar. A Public Sector Undertaking was looted this way, and a scam worth Rs 14,500 crore was the result.
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RTI documents revealed a fraud by Mahadev Naik, who was holding the portfolio of the Ministry of Industries in BJP government. Mahadev Naik misused Goa government's housing scheme for the MLAs by using the same money to buy commercial premises. This was a breach of contract between the government and beneficiary as the loan was made available at a nominal interest rate of just 2% and as per the guidelines, the scheme was only meant to construct houses on existing land or purchase new flats for residential purpose.
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