Booked for cheating in Niravgate, former PNB honcho Usha Ananthasubramanian set to lose job

The government also initiated the removal process of former boss of the beleaguered public-sector bank, Usha Ananthasubramanian, who is currently the managing director and CEO of Allahabad Bank.

Published: 15th May 2018 06:33 AM  |   Last Updated: 15th May 2018 03:43 PM   |  A+A-

Nirav Modi

By Express News Service

MUMBAI / NEW DELHI: Hours after the Central Bureau of Investigation (CBI) submitted its first chargesheet in the multi-crore Punjab National Bank fraud, the government on Monday cracked the whip removing the PNB executives named in the chargesheet. The government also initiated the removal process of former boss of the beleaguered public-sector bank, Usha Ananthasubramanian, who is currently the managing director and CEO of Allahabad Bank.

“On Monday, the PNB held a board meeting and decided to remove the two executive directors, requesting the government to replace them,” Rajiv Kumar, financial services secretary, told reporters on Monday.
The finance ministry also asked the board of Allahabad Bank to call for an emergency meeting and seize all executive powers of Ananthasubramanian with immediate effect.

“For removal and disciplinary action, there’s a set procedure, under Section 8 of the Nationalised Bank Schemes 1970. A show-cause notice to the bank executives was issued around 10 days ago when we found there were lapses,” Kumar explained.

According to the CBI, Ananthasubramanian and other PNB officials overlooked warnings from RBI regarding compliance and even misrepresented the factual position to the banking regulator on SWIFT operations.All of them have been charged under Section 409 of the IPC for criminal breach of trust, Section 420 for cheating, and Section 13(2) of the Prevention of Corruption Act.

According to the CBI, Nirav Modi, who left the country in January, his brother Nishal Modi and Subash Parab, an executive in Modi’s firms, allegedly conspired for issuance of fraudulent Letters of Undertaking. The three entities mentioned in the chargesheet include Diamonds R Us, Stellar Diamonds and Solar Exports.

On Monday, the CBI submitted the first charge sheet against 25 entities and individuals in the multi-crore PNB fraud.The move comes three months after the $2-billion fraud at PNB first came to light and just before the 90-day period to file a charge sheet against the accused comes to an end this month.

A second charge sheet involving Nirav Modi’s uncle Mehul Choksi of Gitanjali Gems will be submitted this week, the public prosecutor said during the submission of the first charge sheet. The CBI had filed three FIRs between January and March this year as part of the ongoing probe.

Four individuals including Ananthasubramanian, two PNB executive directors and a general manager (international operations) namely K V Brahmaji Rao, Sanjiv Sharan and Nehal Ahad are charged under Section 409 of the Indian Penal Code for criminal breach of trust and Section 420 for cheating. Ananthasubramanian was PNB’s chief executive during August 2015-May 2017. Meanwhile, RBI has imposed lending and deposit restrictions on Allahabad Bank given its poor financial health.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

  • Subs

    Nothing but political vendetta played to remove top executives appointed by earlier UPA Govt. GOI will successfully bring the banking industry to a grinding halt?
    4 years ago reply
flipboard facebook twitter whatsapp