PNB fraud case: CBI files chargesheet in Rs 13k crore loan default


The Central Bureau of Investigation (CBI), handling the Punjab National banking fraud case, also one of the biggest in the history of Indian banking industry is likely to file chargesheet against the senior Punjab National Banks (PNB) officials in the court this week.

Allahabad Bank has called an emergency board meeting on Tuesday following Finance Ministry's direction to take away all executive powers from bank's chief executive officer Usha Ananthasubramanian while Reserve Bank of India has put fresh business restrictions on the bank for poor financial results.

Ananthasubramanian, who is now the MD and CEO of Allahabad Bank, headed PNB between August 2015 and May 2017.

The agency has also named PNB executive directors K.V. Brahmaji Rao and Sanjiv Sharan, and general manager (international operations) Nehal Ahad in its chargesheet. Regarding the case, All of them are questioned by the CBI.

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.

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In a stock exchange filing today, Allahabad Bank said it has convened a meeting of the Board of Directors on May 15 to discuss the matter, adding that it has not received any "formal communication" from the ministry.

Currently, the charge sheet which is filed by CBI is against the fraud committed by Nirav Modi.

"The (Punjab National Bank) board has chose to divest (two) Executive Directors of the functional and financial responsibilities and have also requested the government to replace them", Kumar said, adding the government is committed to taking strict action against erring officials.

Billionaire jeweller Nirav Modi is at the centre of the over $2 billion PNB fraud. Disciplinary actions were initiated under Section 8 of Bank Nationalisation Act and we will take strong action if wrongdoing is found against management of banks. As the reports suggest, more officials from the bank could be named in the chargesheet, however, their names have not been clarified by the authorities yet. "They are responsible person and it's only a few who are into this kind of thing otherwise by and large bankers have contributed to the economic growth of the country".