ED files money laundering case against ex-Syndicate bank CMD

Jain has been charged under the Prevention of Money Laundering Act, say sources

The Enforcement Directorate (ED) has registered a money laundering case against S K Jain (pictured), former chairman and managing director of Syndicate Bank, and others who were arrested by the Central Bureau of Investigation (CBI) last year, in a bribery and corruption case.

Sources said the agency slapped charges under the Prevention of Money Laundering Act, taking cognisance of the CBI FIR, which accused Jain of receiving a Rs 50-lakh bribe through conduits and abusing his official position to enhance the credit limits of some companies, in violation of 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 the company, as it had defaulted on the payment of loan instalments amounting to crores of rupees to the bank.

Vice-Chairman 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.