Home >Companies >News >CBI arrests Bhushan Steel vice-chairman Neeraj Singhal

New Delhi: The Central Bureau of Investigation (CBI) has arrested Neeraj Singhal, vice-chairman of Bhushan Steel Ltd, from New Delhi in the Syndicate Bank bribery case.

Singhal had escaped arrest last Saturday when several others including the bank’s managing director had been arrested by the agency. After Singhal had evaded arrest, CBI chief Ranjit Sinha had ordered a probe into the incident.

The PTI reported on Thursday that a Delhi court had issued a non-bailable warrant against Singhal, who had earlier applied for anticipatory bail.

On Saturday, CBI had arrested the bank’s chairman S.K. Jain for allegedly taking a bribe of 50 lakh for increasing credit limit of some companies in violation of banking rules.

Several others were arrested along with Jain, including Ved Prakash Agarwal, chairman-cum-managing director of Prakash Industries Ltd; Pawan Bansal, chartered accountant; Vineet and Puneet Godha (relatives of Jain), Vijay Pahuja, Purushotam Totlani and Pankaj Bansal.

Separately, Prakash Industries said that the company and its chairman were being “wrongly embroiled" in the Syndicate Bank bribery case .

“We would like to assure that the case filed by CBI has no material impact on the functioning or profitability of the company. The company has sufficient cash reserves and assets to meet all its day-to-day requirements and commercial liabilities in the immediate future," the company said in a statement to the exchanges on Thursday.

In its clarification, Prakash Industries Ltd (PIL) stated that it does not have any existing credit facility with Syndicate Bank. The company had applied for external commercial borrowing (ECB) from the bank in March 2014 and had received in principle sanction in May 2014. “It is therefore clear that all allegations relating to bad loans being given to companies failing to repay their existing loans do not relate to PIL," the company said in its clarification. The PIL stock on Thursday ended at 83.65, down 0.48% on BSE.

In a related development, Syndicate Bank stated on Thursday that its executive directors are taking care of the day-to-day activities of the bank, in the absence of a chairman and managing director.

The government on Monday suspended CMD S.K. Jain, after he was arrested by the CBI for accepting bribes to extend credit lines to companies.

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