Bhushan Steel vice chairman Neeraj Singhal was arrested by the Central Bureau of Investigation (CBI) in the Syndicate Bank bribery case soon after a city court issued a non-bailable warrant against him on Thursday.

The agency has accused Mr. Singhal of being part of the conspiracy to bribe now-suspended Syndicate Bank CMD S.K. Jain to ensure that a nearly Rs.100-crore loan to the company was not declared as Non-Performing Assets. “At least Rs.50 lakh was paid to Mr. Jain through his brother-in-law and a middleman for the job,” said a senior CBI official.

Mr. Singhal had gone underground after a CBI team raided his house about a week back. Subsequently CBI Director Ranjit Sinha ordered an internal inquiry to find out why the team did not arrest him despite a direct order from the top. The accused had then moved a court seeking anticipatory bail.

CBI probe has revealed that another company, Prakash Industries, had allegedly paid a bribe of Rs.3.5 crore to the then Syndicate Bank chief to extend its credit limit.

The agency may soon register an alleged disproportionate assets case against Mr. Jain. “We have come across documents pertaining to several properties, whose ownership is being verified. Cash and jewellery worth crores have also been seized. In case investigations throw up facts revealing that he had amassed assets disproportionate to his known sources of income, we will register a separate case,” said the official, adding that the CBI might also probe into his appointment as CMD of Syndicate Bank.

The CBI is examining the role of accused chartered accountant Pawan Bansal in facilitating loans to other private companies to ascertain whether similar modus operandi was adopted in other cases to extend favours. “He was in touch with senior officials of several other banks,” the official said. (The Hindu)