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Chairman of India's Syndicate Bank arrested on bribery allegations

Published on Aug 3, 2014 12:22 PM

MUMBAI (REUTERS) - Indian police arrested the chairman of mid-sized state-run lender Syndicate Bank Ltd late on Saturday over allegations of taking bribes to grant loan extensions to a company, a police spokeswoman said.

The Central Bureau of Investigation, India's top crime-fighting agency, has filed a case against Syndicate Bank Chairman Sudhir Kumar Jain and 11 others, including two directors of a Delhi-based company, and is further investigating the allegations, it said in a statement.

"It is alleged that the said public servant has been indulging into negotiations for illegal gratification directly as well as through middlemen for extending undue favour to private companies by granting sanction to various financial proposals," the statement said, referring to the bank chairman.

The CBI said it recovered 5 million rupees (S$102,350) that was allegedly being paid to by a private company to the bank's head through middlemen to win extensions on loans after defaulting on repayments.

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