PNB scam: Bank officials face the axe
IN THE NET Former MD of PNB, current MD of Allahabad Bank and two PNB executive directors are named in the CBI charge sheet
NEWDELHI: The finance ministry on Monday initiated the process of removing top bank officials named by the Central Bureau of Investigation in its charge sheet over the ₹13,000-crore Punjab National Bank fraud case involving jewellers Nirav Modi and Mehul Choksi as accused.
Former managing director of PNB and the current MD of Allahabad Bank, Usha Ananthasubramanian, and two PNB executive directors — Sanjeev Sharan and KV Brahmaji Rao — have been named in the charge sheet that was filed in a special Mumbai court on Monday.
“The government has initiated the process of removal of the senior management of banks who have been named in the chargesheet,” said Rajiv Kumar, secretary, department of financial services.
“In the meantime, the government has instructed the government nominees to move board resolutions seeking divesting their responsibilities.”
While the PNB board met on Monday and approved the government director’s resolution to take away the responsibilities of the two executive directors, the board of the Allahabad Bank will meet soon after an emergency meeting was called by the government nominee, according to sources. The government had issued a notice to the officials 10 days back after receiving information from the investigating agencies.
This is the first step to initiate their removal under Section 8 of the Nationalised Banks Act.
Calls and messages to Ananthasubramanian remained unanswered, while Sharan declined to comment on the issue. Messages left for Rao with his office remained also unanswered.
Ananthasubramanian, who was the MD and CEO of PNB from August 2015 to May 2017, was questioned by the CBI in February in connection with the case.
Jeweller Modi allegedly used fake letter of undertaking to defraud PNB of over ₹13,000 crore in connivance with bank officials by exploiting the loophole of non-integration of SWIFT with the Core Banking System.
The CBI has filed a chargesheet against Ananthasubramanian and 21 others, including 11 bank officials, over the PNB fraud case. So far, 19 people have been arrested in the case while Modi and Choksi are on the run. JANUARY 16: JANUARY 16-JANUARY 24:
Scrutiny of books shows earlier LOUS made without entries in bank’s books and without supporting documentation JANUARY 29: The bank files a fraud compliant against Nirav Modi group firms with RBI; moves to register
FIR with CBI
FEBRUARY 4: CBI issues lookout
notice against Nirav Modi FEBRUARY 5: PNB informs stock exchanges about the ~281 crore fraud involving the group FEBRUARY 7: PNB files fraud complaint against Mehul Choksi promoted Gitanjali group companies with RBI for ~65 crore LOU liability due on February 9. FIR also filed against these with CBI FEBRUARY 12: Total fraud of
~11,394 crore detected involving Nirav Modi group firms, Gitanjali group firms and Chandri Paper and Allied Products Pvt Ltd dating back to 2011
FEBRUARY 13: FEBRUARY 15: ED conducts raids across 17 locations; attaches properties worth ~5,100 crore FEBRUARY 16: MEA suspends
Modi and Choksi’s passports FEBRUARY 19: CBI seals the Brady Road branch of PNB in Mumbai that is at the heart of the fraud FEBRUARY 20: The CBI arrests Vipul Ambani and four other senior executives of Nirav Modi and
Mehul Choksi’s companies FEBRUARY 21: Nirav Modi writes an email to his employees in India saying they should look for other jobs because he will not be able to pay them
MARCH 4: CBI makes four more arrests - two former employees of Modi’s Firestar International, an auditor of Modi’s group and a former director of one of Choksi’s companies
MARCH 6: CBI arrests a vice
president of Gitanjali group
APRIL 5: An ED official tells HT the agency found Nirav Modi laundered about ~6,000 crore in 2017 during its probe into the case
MAY 14: The CBI files a charge sheet that names Nirav Modi, Allahabad Bank MD and CEO Usha Ananthasubramanian among 22 people in connection with fraud diamond jeweller
Nirav’s brother president, finance,
Firestar International executive assistant to Nirav and authorised signatory of three accused firms senior executive, Firestar group authorised signatory,
Nirav Modi firms
Nirav Modi group representatives approach PNB’S Mumbai branch, seeking letters of undertaking for raising buyer’s credit
PNB files fresh FIR with CBI and registers complaint with Enforcement Directorate Nirav Modi firms
AGM (operations), Firestarter International finance manager, Firestar
chartered accountant
former CEO and MD of PNB and current CEO and MD of Allahabad Bank executive director, PNB executive director, PNB
(international operations), PNB chief manager
(forex department), PNB manager, PNB export officer, PNB deputy general manager (retired), PNB senior executive,
single window operator, Brady House Branch, Mumbai, PNB general manager, PNB internal auditor, PNB
internal chief auditor, PNB