HindustanTimes Thu,30 Oct 2014

Syndicate Bank CMD’s appointment flawed: CBI

Abhishek Sharan, Hindustan Times  New Delhi, August 13, 2014
First Published: 00:35 IST(13/8/2014) | Last Updated: 00:39 IST(13/8/2014)

The Central Bureau of Investigation has sent a report to the Union finance ministry stating that its probe had found the appointment process of public-sector Syndicate Bank’s chairman and managing director SK Jain last July to have been allegedly non-transparent.

It is up to the finance ministry to act on the probe, said a CBI source. On being asked, CBI’s director Ranjit Sinha confirmed this to HT, saying, “We have sent our report to the finance ministry.”

When asked if Jain’s appointment was found to be irregular as well, Sinha said, “We found it to be non-transparent. We are not saying it was irregular.”

Sinha added, “The appointment process of the CMD of a public sector bank should be transparent.”

After Jain’s arrest, he had been suspended by the government.

Jain was arrested on August 2 by the CBI in Mumbai on allegations that he had demanded and accepted a bribe of `50 lakh from the private firm, Bhushan Steel private limited, for not declaring as non-performing asset the Rs. 100 crore loan owed to the bank by the latter. Jain, along with 9 others, was arrested after a six-month discreet probe by the agency that was personally led by the CBI director.

Jain, 54, was appointed the bank’s CMD last July for five years. He was one of the youngest CMDs of a public-sector bank and was due to retire in 2020.

Jain, Singal remanded IN judicial custody

Meanwhile, SK Jain and Bhushan Steel Pvt Ltd vice-chairman and managing director Neeraj Singal were on Tuesday remanded to judicial custody till August 16 by a Delhi court in connection with the bribery case.

Jain and Singal were produced before special CBI Judge Swarana Kanta Sharma who turned down the plea of the probe agency seeking further police remand of Singal.

(With Agency inputs)

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