Prakash Industries, Syndicate Bank and Bhushan SteelBSE -3.21 % plunged upto 20% in trade on Monday, after Chairman-cum-Managing Director of Syndicate Bank SK Jain and seven others were remanded in CBI custody for four days who were arrested for allegedly taking bribe to enhance the credit limit of some companies.
Bureau of Investigation (CBI), which accused him (SK Jain) of taking Rs 50 lakh to increase the credit limits of Prakash IndustriesBSE -5.00 % and Bhushan Steel. When contacted by ET, senior Syndicate Bank officials declined to comment on the matter
The state-owned bank also reported 7 per cent increase in net profit to Rs 485 crore for the first quarter ended June 2014. The bank had a net profit of Rs 452 crore during the corresponding period of the previous fiscal.
The agency (CBI) plans to probe various other angles into the case that may emerge from the telephonic transcripts of the official and conduits.
After completing necessary formalities, the CBI placed 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 under arrest, PTI reported.
As per the PTI report, CBI has registered two cases against Jain and 11 others including CMD and Directors of two private firms based at Delhi, Bushan Steel and Prakash Industries in a bribery case under relevant sections of Prevention of Corruption Act, 1988 and criminal conspiracy.
Efforts to get a reaction from either of the two companies did not fructify as Bushan Steel refused to comment and Prakash Industries said there was no one for media liaison, added the report.
Source: ET
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