The Central Bureau of Investigation has arrested S K Jain, chairman and managing director of Syndicate Bank, for allegedly accepting bribes of Rs. 50 lakh to increase the credit limit of two private company.This is the first time the CBI has arrested an accused of CMD rank.Jain’s brother-in-law (a former cong spokesperson) Vineet Godha was arrested in Bhopal earlier.Jain's arrest, from a Mumbai five-star hotel, comes after a six-month probe, which was closely monitored by CBI director Ranjit Sinha.CBI has also arrested 11 others, including the CMD of Prakash Industries, a Delhi-based steel company.Apart from Jain and (Bansala the alleged middleman) a top official of Delhi-based Bhushan Steel was also arrested.
Two companies for which Jain allegedly raised the credit limit are Prakash Industries and Bhushan Steel, which are being probed by the CBI in the coal block allocation scam.CBI has recovered Rs 21 lakh cash from Jain's residence besides gold worth Rs 1.68 crore and fixed deposits of up to Rs 63 lakh.
