NEW DELHI: The Central Bureau of Investigation (CBI), in its charge sheet filed in the Nirav Modi loan case, has alleged that Usha Ananthasubramanian, former MD & CEO of Punjab National Bank (PNB), and some other senior bank officials were well aware of Modi’s modus operandi, but did not take any meaningful corrective measures.
The investigation agency has also alleged that Ananthasubrahmanian had unauthorisedly delegated the RBI guidelines work to her subordinates without any follow-up action.
On Monday, a special CBI court in Mumbai took cognizance of the charge sheet and permitted the investigation agency to issue fresh non-bailable warrants against Nirav Modi, his brother Nishal Modi, and Subhash Parab, an executive of the Nirav Modi Group.
“Inspite of her knowledge about the modus operandi in these frauds, she did not take any meaningful corrective measures in her capacity as the executive head of the bank and had unauthorisedly delegated the RBI guidelines work to her subordinates without any follow-up action,” the charge sheet said.
The charge sheet has also alleged that she used to meet Nirav Modi and top officials of his firm.
“This indicated clearly that she was aware of the facilities extended to the various group entities of Modi,” it said.
The agency has alleged that banking division of PNB’s headquarters was working on the direction of its top management.
“This was duly dealt with by accused Ananthasubramanian and the bank’s executive directors K V Brahmaji Rao, Sanjiv Sharan and Nehal Ahad, and instead of replying to the queries in true spirit and facts, the general manager of the International Banking Division of the bank’s headquarters prepared a misleading reply and sent it to the RBI after getting the same approved from Sharan,” the CBI said.
“The accused PNB officials, including Ananthasubramanian and others, were aware of this fraud involving PNB, Dubai, and the Indian Overseas Bank, Chandigarh. Yet, they did not take any corrective action and remained silent spectators. This facilitated the continuance of the fraud, resulting in a wrongful loss to the PNB,” it said.
From August 2015 to May 2017, when Ananthasubramanian was the MD & CEO of PNB, relevant circulars, caution notices and urgent questionnaires issued by the RBI were brought to her notice and she dealt with the same, the agency said.