PNB scam: CBI chargesheet names Allahabad Bank CEO, 21 others

Billionaire jeweller Nirav Modi is at the centre of the over $2 billion PNB fraud

In its charge sheet filed before a special court in Mumbai, the agency alleged that PNB officials dishonestly and fraudulently issued LoUs to overseas banks for obtaining buyer's credit in favour of three accused firms Diamond R US, Solar Exports and Stellar Diamonds without any sanction limit or cash margin, they said.

Rajiv Kumar, Secretary, Dept Financial Services (DFS) told media-persons, "PNB board meeting is underway, they will announce the action taken after the meeting".

A CBI official, on the condition of anonymity, revealed that current Allahabad Bank CEO and MD Usha Ananthasubramanian will be charged.

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.

The chargesheeted officials include Usha Ananthasubramanian, who was also the former chief of Punjab National Bank. The CBI recently questioned Ananthasubramanian in connection with the scam. Of that 71.78 billion rupees were due to the fraud, the bank said. The scam pertains to the alleged issuance of fraudulent Letters of Undertakings of more than United States dollars 2 billion to companies of Modi and his uncle Mehul Choksi by the Punjab National Bank's Brady House branch in Mumbai during 2011-17, officials said.

The pain on this account is not yet over for the bank: the bank is making the remaining provision of ₹7,178.42 crore during the first three quarters of FY19 in keeping with the RBI's directive. Before PNB filed the complaint with the CBI, both Modi and Choksi had left the country.




She took charge of PNB at a time when the bank was struggling under a heap of bad loans while being under the RBI's scrutiny for deterioration in asset quality.

The CBI on Monday filed its first chargesheet in the PNB fraud case detailing the roles of Nirav Modi, his brother Nishal Modi and Subhash Parab, an executive in Nirav Modi's company.

So far, the CBI has arrested 20 people in the PNB scam. PNB's earnings will be pressurised as it will have to make enough provisions to deal with the scam-related payouts to other banks.

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.

"After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to be Rs 14,356.84 crore", PNB said.

Related news:

Hot News

isis-killer-beheading-video-story-top Seven-year-old boy and pilot `critical' after Offaly air crash
May 15, 2018 - 22:29
All 16 parachutists onboard successfully made their exit from the plane but eyewitnesses on the ground saw the plane go down. Their bodies were taken to the Midland Regional Hospital in Tullamore for postmortem examinations later.

isis-killer-beheading-video-story-top Retailer Gap says 'sorry' for T-shirt's incorrect China map
May 15, 2018 - 22:28
In the past, Delta and clothing retailer Zara also found themselves in similar situations for treating China and Taiwan as separate countries.

isis-killer-beheading-video-story-top Sebastian Vettel: Reason for Mercedes' resurgence 'straightforward'
May 14, 2018 - 05:55
However, due to the high aerodynamic downforce on the cars, it is hard to follow, which has limited overtaking opportunities at certain circuits.

isis-killer-beheading-video-story-top 'Avengers: Infinity War' Stays Strong With $61 Million Third Weekend
May 14, 2018 - 05:54
On Saturday, it became the second-fastest film to cross the US$500 million mark at the domestic box office. In India itself, the movie has reached the milestone of becoming the highest grossing Hollywood film ever.

isis-killer-beheading-video-story-top Happy mother's day quotes for nanny
May 14, 2018 - 05:51
Perhaps you have a woman in your life who's given a child up for adoption, or alternately know someone who's lost a child. She may like it even more than a combination of breakfast in bed, a card and some flowers, and a pleasant evening meal.

isis-killer-beheading-video-story-top A Star Wars Story
May 13, 2018 - 00:16
Hopefully, they'll be some of their humour for us to see, but don't go into the movie expecting to see a whole lot of it. Along the way on the red carpet, " Star Wars " creator George Lucas walked right past us.

isis-killer-beheading-video-story-top Nawaz Sharif Admits Pakistani Terrorists Behind 26/11 Mumbai Attack
May 13, 2018 - 00:16
There can be only one government, which has been elected through the constitutional process. Despite the sacrifices, nobody accepts our point.

isis-killer-beheading-video-story-top Fifties from Williamson, Dhawan put Sunrisers in control
May 11, 2018 - 04:23
Chasing 188 runs for victory, Sunrisers Hyderabad reached the target with 7 balls to spare and 9 wickets in hand. Delhi didn't learn from SRH's mistakes; the slower balls were taken for runs, and they didn't pick that up.

isis-killer-beheading-video-story-top Sirens sound in Golan Heights: Israeli army
May 11, 2018 - 04:23
A number of those rockets were intercepted by Israel's Iron Dome aerial defense system, resulting in bright and sudden explosions. SANA is full of it. " Iran does not want [this] confrontation, and Israel knows its consequences", he said.

isis-killer-beheading-video-story-top Matt Drudge Not a Fan of Trump's 'Fake News' Threat
May 11, 2018 - 04:23
Karem said it was not possible to play "error-free baseball", saying Trump held the media to a higher standard than himself. What's more , barring reporters because of coverage could cross a legal line.

isis-killer-beheading-video-story-top Google to ban all ads related to Irish abortion referendum
May 11, 2018 - 04:21
Depending on what you search online, advertisers can select terms that make their ads appear when you search that term. The move comes amid global concerns about online election meddling and the role of internet ads in swaying voters .

isis-killer-beheading-video-story-top Ronaldo not a worry for Champions League final after ´minor´ injury - Zidane
May 11, 2018 - 04:20
Real Madrid , has clarified that their superstar forward, Cristiano Ronaldo will be fit for the Champions League final. But Zidane had a positive update on the duo as he revealed, "Isco trained as normal and we'll see what happens there".

isis-killer-beheading-video-story-top Nintendo Debunks Rumors of Nintendo Switch Virtual Console, Again
May 09, 2018 - 00:43
These will include classics like " The Legend of Zelda ", " Mario Bros .", " Balloon Fight ", " Donkey Kong ", and many others. Nintendo had previously said that the $20/year plan would allow Switch owners to play NES games with online features.

isis-killer-beheading-video-story-top When India Will Shift It's Embassy To Jerusalem?
May 08, 2018 - 01:35
On Monday, Paraguay said it was planning to move its embassy from near Tel Aviv to Jerusalem on May 21 or 22. Jason Greenblatt, the president's chief representative for Middle East peace negotiations, will also attend.

isis-killer-beheading-video-story-top Second Indian girl raped, set on fire
May 08, 2018 - 01:35
Police said that they were investigating a total of 18 people in relation to the rape and murder, of which 14 have been arrested. The two cases have shone a spotlight on the treatment of rape in India, where some 40,000 cases were reported in 2016.