The CBI registered two cases against Sudhir Kumar Jain, chairman and managing director of Syndicate Bank, and 11 others for violation of the country’s laws on corruption and criminal conspiracy, the investigative agency said in a statement on Aug. 2. Shares of the Bangalore-based lender slumped 6.9 percent, the biggest drop since July 8, to 134.35 rupees in Mumbai today.
Jain has been negotiating “for illegal gratification directly as well as through middlemen” in exchange for providing financial advantages to private companies, the CBI said in the statement.
Bhushan Steel Ltd. (BHUS) and Prakash Industries Ltd. (PKI) are the companies that sought favors from Jain, Kanchan Prasad, a New Delhi-based spokeswoman for the CBI, said by phone today. Bhushan Steel fell 3.6 percent to 378.55 rupees, the lowest level since March 2012. Prakash Industries tumbled 20 percent in the steepest drop since January 2001.
Phone calls made to officials at Bhushan Steel, Prakash Industries and Jain’s office weren’t answered today.
To contact the reporter on this story: Anto Antony in Mumbai at firstname.lastname@example.org
To contact the editors responsible for this story: Chitra Somayaji at email@example.com Russell Ward, Sam Nagarajan