Government suspends arrested Syndicate Bank Chairman SK Jain
NEW DELHI: The Union government on Monday suspended
Syndicate Bank chairman and managing director SK Jain following his arrest by
the CBI for allegedly accepting bribe of Rs 50-lakh to enhance the credit limit
of some companies.
Financial Services secretary GS Sandhu said the
Finance Ministry received a preliminary report from the CBI on the arrest of
Jain on Saturday, based on which he was suspended. Jain, 54, was appointed CMD
of state-owned Syndicate Bank in July last year for a period of five years. He
was one of the youngest CMDs of a public sector bank and was due to retire in
“We have suspended Jain and two executive directors
(EDs) have been given charge of the bank as an interim arrangement,” the
Secretary told PTI. M Anjaneya Prasad and TK Shrivastava are the two EDs of the
Jain, along with seven other accused were on Sunday
remanded in CBI custody for four days as the agency plans to probe various
other angles into the case that may emerge from the telephonic transcripts of
the official and conduits.
After completing necessary formalities, the CBI placed
Jain and seven others - Chairman-cum-Managing Director of Prakash Industries
Ved Prakash Agarwal and Director Vipul Agarwal, Chartered Accountant Pawan
Bansal, Vineet and Puneet Godha (relatives of Jain), Vijay Pahuja and Pankaj
Bansal under arrest.
Jain was arrested by CBI on Saturday for allegedly
negotiating with Bhushan Steel for an illegal gratification of Rs 50 lakh in
return for granting credit extension to that company as it had defaulted on the
payment of loan instalments amounting to crores of rupees to the bank.
Vice Chairman of the company Neeraj Singhal, who is
named in the FIR and is since absconding, is alleged to have made the payment
through a conduit Purushotam Totlani to Vineet Godha, brother-in-law of Jain.
The conduit is also absconding and the CBI hopes to nab them soon.
CBI claimed to have recovered cash to the tune of Rs
21 lakh from Jain’s residence besides gold worth Rs 1.68 crore and fixed
deposits of up to Rs 63 lakh. The entire racket was busted after CBI monitored
the activities of Jain for last six months.
The highly secretive operation, which was being
monitored by CBI Director Ranjit Sinha, came to an end after the alleged
"deal" was being struck by the company with the bank CMD.
CBI has registered two cases against Jain and 11
others, including CMD and Directors of two private firms based at Delhi --
Bhushan Steel and Prakash Industries -- in a bribery case under relevant sections
of Prevention of Corruption Act, 1988 and criminal conspiracy.
Efforts to get a reaction from either of the two
companies did not fructify as Bushan Steel refused to comment and Prakash
Industries said there was no one for media liaison.
Sinha, who has been at the forefront of fighting
corruption at high places, has been personally monitoring the case and searches
that were being conducted by its sleuths since yesterday morning at 20 places
in Delhi, Mumbai, Bangalore and Bhopal and continued till late Monday morning.
In this case, CBI alleged that the conduit was the
brother-in-law of the CMD and the deal was struck by the chartered accountant
who has started his own firm of providing loans to big corporate houses.