NEW DELHI: BJP leader and former Union Minister for Urban Development Ananth Kumar has welcomed the Supreme Court's directive to the Central Vigilance Commission to probe the allegations of irregularities in the sanction of Housing and Urban Development Corporation (HUDCO) loans during his tenure.

Speaking to reporters here on Tuesday, he described the allegations as "motivated, malicious and baseless.''

HUDCO had cleared loans only after appraisal of the project proposals, with diligence and within the framework of procedures and regulations. "During my tenure, the functioning of HUDCO was on very sound footing and it was most transparent."

The public sector undertaking had, for instance, reduced the default on loan repayments from 10.29 per cent on March 31, 2002 to 8.25 per cent as on March 31, 2003, and had increased its net profit after tax from Rs. 114.06 crores in 2000-02 to Rs. 266.54 crores in 2002-03.

Also, 93 per cent of the loans was sanctioned for projects proposed by Government agencies.

On the allegation that three part-time directors of HUDCO had sanctioned loans amounting to Rs. 5,000 crores to 50 projects on a single day, in the absence of a single permanent director, he said the proposals had been properly vetted by HUDCO's regional offices and the project appraisal committee at the national headquarters before they were cleared by a regular meeting of the board of directors.

There was no question of part-time directors. All board directors were appointed by the Ministry as was the practice.

On the allegations that he had misused HUDCO funds for paying his mobile bills and other personal expenses, he said HUDCO had a tradition of providing office and communication facilities such as fax, telephone, mobile, Xerox and computer to the Minister.

The HUDCO Board had passed a resolution in this regard much before his tenure.

He also welcomed the Supreme Court directive to authorities to appoint a Chief Vigilance Officer in HUDCO within six months and said there was a regular Chief Vigilance Officer in HUDCO during his tenure, while the post had been lying vacant for over one year now, since May 14, 2004.

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