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CBI arrests Syndicate Bank CMD S K Jain

  •   Sun, Aug 03 2014 08:20:52 AM

New Delhi, Aug 3 (IANS): The CBI Saturday arrested S.K. Jain, chairman and managing director (CMD) of state-owned Syndicate Bank along with five others for allegedly taking a bribe of Rs.50 lakh, an official said.

Jain was arrested in Bangalore following charges of demanding a bribe to extend credit facilities of some companies, an official of the Central Bureau of Investigation (CBI) said here.

The CBI has registered two cases against Jain and 11 other private people, including the CMD and directors of two Delhi-based private firms - Bhushan Steel Ltd. and Prakash Industries - on charges of criminal conspiracy and under the Prevention of Corruption Act.

Bhushan Steel vice chairman Neeraj Singhal along with Prakash Industries CMD Ved Prakash Agarwal and director Vipul Agarwal have been named in the case.

The other names are Pawan Bansal, Vineet Godha and Punit Godha, Vijay Pahuja, Pursotam Lal Totlani and Pankaj Bansal.

"It is alleged that S.K. Jain has been indulging in negotiations for illegal gratification directly as well as through middlemen for extending undue favour to private companies by granting sanction to various financial proposals," an official said.

The official further said the private people, on behalf of companies, allegedly entered into criminal conspiracy and obtained illegal gratification meant for Jain and further delivered it to the middlemen.

"It is further alleged that Jain was directly negotiating with a private company in one of the cases for an illegal gratification of Rs.50 lakh in lieu of granting credit extension to the company as it had defaulted on the payment of loan instalments amounting to crores of rupees to the Syndicate Bank," said the official.

"The company official later agreed to pay the gratification and the money was transferred to the middlemen who are also relatives of Jain," said the official.

The CBI laid a trap and recovered the illegal gratification of Rs. 50 lakh on the spot after the delivery was made.

"So far, several asset papers and incriminating documents have been found. An amount of Rs.21 lakh along with a fixed deposit of Rs.63 lakh and gold worth Rs.1.68 crore have been recovered from S.K. Jain," the official said.

Raids were conducted simultaneously at 20 places across Delhi, Bangalore, Bhopal and Mumbai, the official added.
  

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Comment on this article

  • P. Shivaram Shetty, Baroda / Vadodara

    Sun, Aug 03 2014

    Even very healthy companies willfully default the payment of loan installments and then ask for Credit Extension or CDR under Corporate Debt restructuring scheme, which also involves crores of Rupees waiver of interest portion.
    Such Credit Extension or CDR racket is there in all the Public Sector Banks. It works like mafia. Even employees Union leaders know this but they too are helpless.
    The big Companies who have invested in gambling games like IPL Cricket have also defaulted loan installments intentionally. They can afford pay in crores to Cricket players but they don't use the same amount to repay the bank loan in time.
    Gujarat State is number one in India in cheating the Banks by big companies through CDR.

    DisAgree [2] Agree [2] Reply Report Abuse

  • flavian dsouza, chik/banaglore

    Sun, Aug 03 2014

    this is nothing new ..all take a cut directly or indirectly . some of them prefer foreign trips some cash etc etc so this is not new we should end and only way is capital punishment .

    DisAgree [1] Agree [2] Reply Report Abuse

  • Rajesh, Manipal

    Sun, Aug 03 2014

    I feel very sorry for dear SK Jain ji. He is a very nice man. I pray God for his release soon. What about his future luxury life. What about his family. He helped the company in need of money. Is it wrong to help someone in need. He demanded money to keep his wife and children happy. And fifty lakhs is a very small amount for his status. I feel he should not be further tortured and the bank would face great problems without an efficient leader immediately. Any person in his shoes would have demanded more than a crore for such a favour

    DisAgree [12] Agree [2] Reply Report Abuse

  • RAVINDRA, KARKALA

    Sun, Aug 03 2014

    Many of these PSBs are now owned by general public who invested their hard earned money. But, Our govt is mismanaging these banks by blatant interference and appointing corrupt officials as head of these banks. Niether meaningful autonomy is given to these PSBs nor professional board appointed to manage these banks. When private banks earn huge profits, some PSBs have d losses. Let new NDA Govt take corrective steps urgently, otherwise these corrupt top management destroy these banks.

    DisAgree [2] Agree [2] Reply Report Abuse

  • RAVINDRA, KARKALA

    Sun, Aug 03 2014

    Achche din for banking industry!

    DisAgree [3] Agree [6] Reply Report Abuse

  • Anilkumar, Mangalore

    Sun, Aug 03 2014

    This is typical of Syndicate Bank. Right decision by CBI.
    Even I had a small share of such experience about few years back when I wanted a certificate from the Senior Bank Manager to show that I have the capacity to pay the fees of my son for higher Studies in USA. I was a salary account holder in the bank with FDs in my name. Yet the Manager demanded Rs.1000 for a certificate. I had to refuse the suggestion and got the same certificates from State Bank Manager without any payment. I had only a Savings Account in this bank.
    Similar issue was going on with my employer company about overdraft facility. Syndicate bank was always quoting some rules and refusing credit. Finally we had to change the bank itself.

    DisAgree [1] Agree [10] Reply Report Abuse

  • Rudolf, Mumbai

    Sun, Aug 03 2014

    These so called "highly educated" moving in suit/boot/pant holding top positions of power misusing it for personal gains is destroying 1000s of crores of sweat money of the taxpayers each year!!

    If such people holding esteemed positions, who should be trend setters and examples for the upcoming generations, resort to such lowly short cuts to garner illegitimate wealth then what to talk of the ordinary pickpockets and robbers!!

    DisAgree [1] Agree [10] Reply Report Abuse

  • Arsalan, uk

    Sun, Aug 03 2014

    It happens in every banking organization of all sizes where managers / senior managers have their percentage fixed on certain undue favours they make while passing huge amount OD facilities or loan facilities through their agents / brokers. Nobody can deny this fact. Since this case was of high importance, the central agencies laid the trap and poor Syndicate Bank CMD fell in that trap. It becomes an issue only when they get caught otherwise many people out there still doing it in an organized manner without getting caught !! Let this be an eye opener to them.

    DisAgree [2] Agree [10] Reply Report Abuse

  • ISMAIL K PERINJE, PERINJE.

    Sun, Aug 03 2014

    Because of such illegitimate transactions State owned bank's NPA is huge headache for Banks and some extent Indian economy.Ordinary man can't get deserving loans and Bank Managers make us several trips bank to local admin offices to pass the loan.I also heard there would be %age for Mgrs in sanctioned loans?

    DisAgree [4] Agree [11] Reply Report Abuse

  • Amin bhoja, Patte / Riyadh

    Sun, Aug 03 2014

    Corruption itself a cancer to this society,it slowly spreads but later beyond to it's control.It is in the best interest of this society if anyone found guilty from corruption please relieve the person from his public responsibility.India is to be poor country unless we hold control of this corruption corrupt people in this society slowly and towards it's end point.

    DisAgree [1] Agree [18] Reply Report Abuse

  • Ranjith rodrigues, udupi

    Sun, Aug 03 2014

    Indians are corrupt by nature, and we have been so, for thousands of years. When there is systemic corruption in our dna, it is very difficult to eradicate. Even lokayuktha officials are corrupt...but then nothing is impossible. If there is a will there is a way, and the will should come from the public.

    DisAgree [1] Agree [9] Reply Report Abuse

  • Prasheesh Kumar. S. , Mumbai.

    Sun, Aug 03 2014

    Syndicate Bank case is just a tip of an ice berg.
    I will be happy to see a News saying - 'CBI arrests CBI CMD'.
    I was working for CBI ( Central bank of India) in Mumbai Head Office for two decades and I have personally observed how this Bank came down from number ONE position to number Seventh position only due to rampant corruption at top level.

    DisAgree Agree [23] Reply Report Abuse

  • Ramakrishna. K. , Mangalore

    Sun, Aug 03 2014

    North Indian E x e cutives can never remain honest, because they have 'Purchased' this high post by paying crores of rupees bribe to concerned people in Finance Ministry. After all they have to recover this huge 'Investment' with 200% interest within just two years of their remaining service ! That is why they are in such a hurry to swallow.

    DisAgree [3] Agree [30] Reply Report Abuse

  • STEVEN, UDUPI

    Sun, Aug 03 2014

    Kindly refrain from blaming a specific region, caste or group of our country and being judgmental. This menace is spread across the country.

    DisAgree [2] Agree Reply Report Abuse

  • jeetendra hegde, mumbai

    Sun, Aug 03 2014

    Now all banks which took birth in undivided dakshina kannada remain so for namesake..like vijaya bank ,syndicate bank etc...,most of its officers belongs to north Indian bhaiyyas.

    DisAgree [1] Agree [22] Reply Report Abuse

  • Ravi B Shenava, Mangalore

    Sun, Aug 03 2014

    Chairpersons and utives of all Public sector Banks have minted crores of Rupees by CDR (Corporate Debt Restructuring).

    DisAgree [1] Agree [17] Reply Report Abuse

  • jacintha, middle east

    Sun, Aug 03 2014

    Who actually is corrupt? Those who have or those who do not have?
    Corruption is a sport? a pass time?

    DisAgree [2] Agree [10] Reply Report Abuse

  • Valerian Dsouza, Udupi/Mumbai

    Sun, Aug 03 2014

    Tax payers paying through their noses.
    These people, get hefty salary, supposed to be guardians of these banks wealth and trust of people,
    throw the funds to WILLFUL DEFAULTERS as if it is their fathers money.

    DisAgree Agree [19] Reply Report Abuse

  • Well wisher, India

    Sun, Aug 03 2014

    well done CBI
    CBI need to dig more deep into the several transactions of SBI , because people call them bad loans.
    Especially, kingfisher how did they get so much of loans even when they were defaulters? We can suspect something fishy there!

    DisAgree [1] Agree [16] Reply Report Abuse


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