Published: Tue, May 15, 2018
Sports | By Sarah Myers

Top bank officials likely to face charges in PNB scam case

Top bank officials likely to face charges in PNB scam case

Kumar also said that the Allahabad Bank will call a board meeting and then decide to divest the power of its Managing Director named in Central Bureau of Investigation (CBI) charge sheet.

Financial services secretary Rajiv Kumar said similar action is likely to be taken by the board of Allahabad Bank against Ananthasubramanian.

The chargesheet has detailed the alleged role of former PNB chief Ananthasubramanian, who is now Allahabad Bank CEO and MD, in the scam.

Following the government's directive, which came within hours of the CBI filing a chargesheet in the country's biggest banking fraud case, the PNB board divested its two executive directors, K.V. Brahmaji Rao and Sanjiv Sharan, of all financial and executive powers.

Aniyath Shiv Raman Nair and Vipul Chitalia have also been arrested from the Gitanjali Group, associated with Mehul Choksi.

The names of two serving and one former senior official of PNB, along with several others, will reportedly feature in the chargesheet.

Nirav Modi, of course, will be named in the chargesheet.

After the IOB fraud had surfaced, the RBI had issued guidelines and circulars to prevent such frauds in the banks which were allegedly not implemented in PNB in its entirety, they said. "Three companies and 22 people have been listed as accused and around 12 of them are related to PNB".

He also said state-run PNB had begun the process of removing two executive directors, without naming the executives or saying why the three were being ousted.

The chargesheet filed on Monday is based on CBI's FIR registered on January 31 against Nirav Modi, his wife Ami, brother Nishal, and uncle Choksi, among others.

The sources said naming of Ananthasubramanian, who was at the helm of affairs in Punjab National Bank during 2015-17, in the charge sheet did not mean that her predecessors had been cleared by the agency.

Both Nirav and Choksi had left the country before PNB filed the complaint with the CBI.

PNB was hit by a almost Rs13,000 crore scam allegedly perpetuated by jewellers Nirav Modi and Mehul Choksi in connivance with some bank employees. She was the managing director of PNB until May 5 a year ago. However, these were not accounted in the bank's core banking system.

PNB had reported a Rs 143.5 billion fraud in January, wherein a few of its employees had issued letters of undertaking, in collaboration of Nirav and Mehul firms, in an unauthorised manner.

Shares in Allahabad Bank fell as much as 5 percent on Monday. "We issued notices and sought explantation 10 days back from top officials of these banks", he said.

Like this: