ED files money laundering case against Syndicate bank’s former CMD
4 April 2015 11:35 PM GMT
The Enforcement Directorate (ED) has registered a money laundering case against the former CMD of Syndicate Bank S K Jain and others who were last year arrested by Central Bureau of Investigation in a bribery and corruption case.
Sources said the agency slapped charges under the Prevention of Money Laundering Act (PMLA), taking cognisance of the CBI FIR which had accused Jain of receiving a bribe of Rs 50 lakh through conduits and abusing his official position to enhance the credit limits of some companies in violation of laid down procedures.
“The agency has registered a money laundering case against Jain and others. Preliminary inquiries in the case have detected that Jain allegedly has assets procured through tainted means. The ex-Chairman and Managing Director of Syndicate Bank would soon be questioned,” sources in the agency said.
Jain was arrested by CBI in August last year 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, is alleged to have made the payment through a conduit Purushotam Totlani to Vineet Godha, brother-in-law of Jain. 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.
Sources said the agency slapped charges under the Prevention of Money Laundering Act (PMLA), taking cognisance of the CBI FIR which had accused Jain of receiving a bribe of Rs 50 lakh through conduits and abusing his official position to enhance the credit limits of some companies in violation of laid down procedures.
“The agency has registered a money laundering case against Jain and others. Preliminary inquiries in the case have detected that Jain allegedly has assets procured through tainted means. The ex-Chairman and Managing Director of Syndicate Bank would soon be questioned,” sources in the agency said.
Jain was arrested by CBI in August last year 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, is alleged to have made the payment through a conduit Purushotam Totlani to Vineet Godha, brother-in-law of Jain. 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.
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