SC verdict aided CBI to arrest Jain

Agency moved taking cue from order on govt sanction

The arrest of Syndicate Bank Chairman S K Jain is the first by the CBI after the Supreme Court struck down a provision to seek prior government sanction for filing an FIR against top officials above the rank of joint secretary.

CBI officials said the case could not have been cracked if not for the Supreme Court verdict in May annulling the provision, which investigators have described as a hindrance to probe at the highest echelons of power.

They also said that the surprise element in the investigation, which many times provides unexpected results, was compromised in cases involving senior officials which were blown off the moment an agency approached the government for sanction.With the Supreme Court order, they said, they have more freedom. Jain’s arrest was one of the biggest in recent times.

Jain was arrested on Saturday for allegedly taking a bribe of Rs 50 lakh for increasing credit limit of some companies in violation of banking rules. 

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 – were also arrested. Searches were conducted at 20 places, including Delhi, Bhopal, Mumbai and Bangalore.

Investigators alleged that this was not the first time Sinha took bribes.  However, the CBI could not catch him, as they were not able to find out the location where the bribe money was being handed over. 

 CBI officials said they were probing whether the accused had approached top officials of other banks with an offer of bribe to increase credit limits and for other favours.