MUMBAI Aug 7 India's Prakash Industries Ltd
, whose chairman has been arrested by police
investigating alleged bribery, on Thursday denied any wrongdoing
and said the company and its head had been wrongly dragged into
The Chairman of state-run Syndicate Bank Ltd was
arrested last weekend over allegations that he had sought bribes
to favour defaulting debtors. Police also arrested two top
executives of Prakash - a company with interests in steel, power
and mining - for allegedly offering bribes.
"The company and its chairman have been wrongly embroiled in
the case," Prakash said in a stock exchange filing, adding it
did not have any existing credit facility with Syndicate Bank
and had not defaulted on servicing any loan.
It said it had sufficient cash reserve and assets to meet
its day-to-day requirements and commercial liabilities in the
immediate future and that the case would have no material impact
on its functioning or profitability.
Prakash Industries shares, valued at about $183 million, are
down nearly 25 percent this week. The stock fell 0.8 percent on
Thursday to close at 83.55 rupees in a Mumbai market
that edged down 0.3 percent.
(Reporting by Devidutta Tripathy; Editing by David Holmes)