Chairman-cum-Managing Director of Syndicate Bank S K Jain and seven others were on Sunday remanded in CBI custody for four days as the agency plans to probe various other angles into the bribery case that may emerge from the telephonic transcripts of the official and conduits.
After completing necessary formalities, the CBI arrested Jain and seven others: Chairman-cum-Managing Director of Prakash Industries Ved Prakash Agarwal and Director Vipul Agarwal, Chartered Accountant Pawan Bansal, Vineet and Puneet Godha (relatives of Jain), Vijay Pahuja and Pankaj Bansal.
They were produced before a magistrate who remanded them in CBI custody for four days, official sources said.
Jain was arrested by CBI on Saturday for allegedly negotiating with Bhushan Steel for an illegal gratification of Rs 50 lakh in return for granting credit extension to that company as it had defaulted on the payment of loan installments amounting to crores of rupees to the bank.
Vice Chairman of the company Neeraj Singhal, who is named in the FIR and is since absconding, is alleged to have made the payment through a conduit Purushotam Totlani to Vineet Godha, brother-in-law of Jain. The conduit is also absconding and the CBI hopes to nab them soon.
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.
The entire racket was busted after CBI monitored the activities of Jain for the last six months.
The highly secretive operation, which was being monitored by CBI Director Ranjit Sinha, came to an end after the alleged "deal" was being struck by the company with the bank CMD.
CBI has registered two cases against Jain and 11 others including CMD and Directors of two private firms based at Delhi - Bhushan Steel and Prakash Industries - in a bribery case under relevant sections of the Prevention of Corruption Act, 1988 and criminal conspiracy.
Efforts to get a reaction from either of the two companies did not fructify as Bhushan Steel refused to comment and Prakash Industries said there was no one for media liaison.
Sinha, who has been at the forefront of fighting corruption at high places, has been personally monitoring the case and searches that were being conducted by its sleuths since yesterday morning at 20 places in Delhi, Mumbai, Bangalore and Bhopal and continued till late this morning.
In this case, CBI alleged that the conduit was the brother-in-law of the CMD and the deal was struck by the chartered accountant who has started his own firm of providing loans to big corporate houses.