CBI finds foul play in Jain's appointment as Syndicate Bank chief

The Central Bureau of Investigation (CBI) on Tuesday said it has found irregularities in the appointment of S K Jain as the chairman and managing director of Syndicate Bank during the regime of United Progressive Alliance government, marking a significant turn in the Syndicate bank bribery case.

Jain was arrested early this month for taking bribe through middlemen from Bhushan Steel and Prakash industries in exchange of loans violating prudential norms. Jain was later suspended as Syndicate bank chief and is now in custody.

Besides, the agency is in possession of some ’explosive phone transcripts which show the involvement of other public sector banks in the racket, the Economic Times reported today quoting CBI director Ranjit Sinha.

On 7 August, the CBI arrestedBhushan Steel vice chairman Neeraj Singhal in the Syndicate Bank bribery case. The agency has accused Singhal of being part of the conspiracy to bribe now-suspended Jain to ensure that a nearly Rs 100-crore loan to the company was not declared as Non-Performing Assets.

Along with Jain, the CBI also arrested a chartered accountant called Pawan Bansal who acted as the middleman for the deals between Syndicate and Bhushan Steel.

“Bansal was in touch with other PSU banks too for the purpose of loans for companies. We will look at other banks too if required,” Sinha told ET.

Meanwhile, the India Today reports that CBI is in possession of documents and phone intercepts indicating that Bansal got loans for companies from UCO Bank, Bank of Maharashtra and Canara Bank.According to the report, some of the loans allegedly sanctioned at Bansal’s behest include a loans to Era Infra, Tayal Group, Arshiya International SEL Manufacturing.

As Firstbiz said earlier , “one must thank Jain for taking the Rs 50 lakh bribe and CBI for digging out the dirt, thus bringing the whole issue to public.Else, this could have gone on forever.