The Enforcement Directorate (ED) has registered a money laundering case against former CMD of Syndicate Bank SK Jain and others who were arrested by CBI in a bribery and corruption case last year.
The agency slapped charges under the Prevention of Money laundering Act (PMlA), taking cognisance of the CBI FIR which had accused Jain of receiving a bribe of Rs50 lakh through conduits and abusing his official position to enhance the credit limits of some companies in violation of laid down procedures, sources said.
Sources said preliminary inquiries into the case by the agency have detected that Jain allegedly has procured assets through tainted means and he will be soon called for questioning.
Jain was arrested by CBI in August last year for allegedly negotiating with Bhushan Steel for an illegal
gratification of Rs50 lakh in return for granting credit extension to that company as it had defaulted on the payment of loan instalments amounting to crores of rupees to the bank.