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Government Accepts NHB Chief’s Resignation; To Probe Alleged Misconduct 

The government has accepted resignation of National Housing Bank managing director Sriram Kalyanaraman, even as an investigation has been ordered into alleged irregularities and misconduct committed by him as a regulator, official sources said.

“This is a part of the wider exercise to clean India’s public financial sector. There were reports of mismanagement and unethical practices. An inquiry is on,” a senior government official said.

The Central Vigilance Commission few months back ordered an inquiry to probe alleged misconduct committed by Kalyanaraman and subsequently sought his reply, the official said.

The NHB chief, however, tendered resignation along with clarification, the official said, adding that since inquiry was initiated when he was NHB’s MD, his resignation will not impact the departmental inquiry.

The resignation was accepted by Appointments Committee of Cabinet and a notification to this effect has been issued, the official said. A query sent to Kalyanaraman seeking a comment did not elicit any response.

Meanwhile, the CVC has also directed the chief vigilance officer of NHB and the Delhi Police to investigate various allegations levelled against Kalyanaraman. There are allegations that Kalyanaraman was involved in objectionable activities at NHB’s Delhi guest house.

“He was availing multiple residential accommodations at Delhi and Mumbai. There were also irregularities in campus placements besides various irregularities in refinance,” an official said. Huge loans were refinanced to leading private banks and housing finance companies, he added.

Kalyanaraman was appointed as the MD and CEO for a period of five years in 2015. Before this he was Director of business development at Equifax Credit Information Services Pvt. Ltd.

Before Equifax he was the director and head of asset products and business banking at Deutsche Bank India, from February 2007 to March 2010.

The government on Monday dismissed Usha Ananthasubramanian who was three months ago divested of her powers as MD and CEO Allahabad Bank in the aftermath of the country’s biggest bank fraud perpetrated by Nirav Modi.