NEW DELHI, MAY 14
The board of Allahabad Bank has been asked to take away all powers from Usha Ananthasubramanian, CEO and MD of the bank, Rajiv Kumar, the Financial Services Secretary said on Monday, while briefing the media on the multi-crore Punjab National Bank (PNB) fraud.
Ananthasubramanian was the MD and CEO of PNB from 2015 to 2017 — a period mired in controversy because of the scam– and was questioned recently by the CBI in connection with the case. “Allahabad Bank will call a board meeting and then decide to divest the power of Chief Managing Director (CMD) named in CBI charge sheet,” Kumar said. “Today, we have directed directors of PNB and Allahabad bank to divest all the powers of those who are accused,” he added.
Apart from Ananthasubramanian, the government has also initiated the removal of 3 board level officers and 2 ED officers of PNB, Kumar said.
Earlier on Monday, the Central Bureau of Investigation (CBI) on Monday filed its first chargesheet in a court against absconding accused Nirav Modi and several others following an investigation into the PNB fraud. The charge sheet, filed in a special court in Mumbai, names several other top officials of the bank including Ananthasubramanian.
The agency has also named PNB executive directors K V Brahmaji Rao and Sanjiv Sharan, and general manager (international operations) Nehal Ahad in its charge sheet. CBI has detailed the roles of Nirav Modi, his brother Nishal Modi and Subhash Parab, an executive in Nirav Modi’s company, officials said.
Authorities have arrested at least 20 people and a court has issued non-bailable warrants against accused jewellers Nirav Modi and his uncle Mehul Choksi. The duo have denied the allegations against them, and authorities said they both left the country before the fraud was uncovered.
NEW DELHI, MAY 14