ED files money-laundering case against Syndicate Bank ex-chief

04 Apr 2015

The Enforcement Directorate has registered a case under the Prevention of Money Laundering Act against S K Jain, the former chairman and managing director of state-owned Syndicate Bank, and others who were arrested by the Central Bureau of Investigation in August last year in a bribery and corruption case.

The CBI had filed two cases against Jain, accusing him 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.

''Taking cognisance of the CBI FIR (first information report), the Directorate has registered a money laundering case under PMLA against Jain and others. Preliminary enquiries revealed that Jain has assets procured through illegal means. The accused will soon be questioned,'' an ED source told The Indian Express.

After keeping a watch on the activities of Jain for six months, the CBI had swooped in on one of his relatives as well as MP-based chartered accountant Pawan Bansal, and arrested them while allegedly receiving cash from representatives of companies which have been involved in the coal scam.

The CBI had also arrested Vineet Godha, former spokesman and in-charge of legal cell of the Congress Party and his brother Puneet. The brothers are related to Jain.