Singhal caught next to CBI HQ; Syndicate Bank probe could widen

The absconding businessman accused in the CMD bribery scandal was arrested in Delhi today

The probe into the Syndicate Bank bribery scandal is about to widen. It appears three to four other public sector banks are likely to come under the Central Bureau of Investigation (CBI)’s scanner.

Deepening its probe against Sudhir Kumar Jain, chairman and managing director of Syndicate Bank, CBI is also likely to investigate his appointment to the job.

It also managed to catch and take into custody Neeraj Singhal, the vice-chairman of Bhushan Steel, after a six-day search. Singhal, absconding after raids at his residence last Friday and denied anticipatory bail by a court here on Wednesday, was nabbed near the Lodhi Hotel, a stone’s throw from CBI headquarters.

Alleged “middleman” Purshottam Lal Totlani has also been evading arrest.

The agency has, in addition, issued a notice as part of its internal inquiry to its own officers who went to Singhal’s place to conduct the raids, asking them to explain why he was not immediately taken for questioning or detained.

CBI has alleged that beside Bhushan Steel’s bribe of Rs 50 lakh, Prakash Industries had given a Rs 3 crore bribe to Jain, which it has not been able to trace so far. CBI also suspects a far greater amount received by Jain though the hawala route. Both these companies are also embroiled in the coal block allotment controversy.

Jain and eight others, including Prakash Industries’ chairman & managing director, Ved Prakash Agarwal, were arrested in this case last Saturday. Bhushan Steel had taken a loan of Rs 100 crore from Syndicate Bank. Prakash Industries had borrowed Rs 120 crore. Both allegedly tried to settle the dues by bribing Jain.

The agency had conducted raids at 20 locations across Bangalore, Bhopal, Mumbai and Delhi over the weekend, after registering a case in the matter. Jain, CBI has alleged, enhanced the credit limit to certain private parties, bypassing the rules and regulations.

The agency is in the process of examining the documents and material confiscated on computers and hard drives.