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CBI charges former PNB boss and 10 staff in fraud case - sources

Reuters  |  NEW DELHI/MUMBAI 

By Prusty, and Rajendra Jadhav

NEW DELHI/MUMBAI (Reuters) - The (CBI) on Monday charged the former of (PNB) and 10 other officials at the in the country's largest-ever bank fraud case, two sources familiar with the matter told

The CBI accused former PNB boss Usha Ananthasubramanian, currently the of Allahabad Bank, in the first batch of formal charges to be filed in the case, the two CBI sources said.

It also named PNB directors and Sanjiv Sharan, among others, in a charge sheet filed in a Mumbai court, the sources said, adding the officials were accused of breaching central

Diamond jeweller was also among those named in the list, two other sources said.

PNB, India's second-largest state-run bank, disclosed in February that two had defrauded it by raising credit from overseas branches of other Indian banks using illegal guarantees issued by rogue PNB staff over several years.

PNB has been conducting a separate internal probe into the fraud and has already suspended over 20 officials.

The two PNB executives and Ananthasubramanian did not respond to multiple calls and messages seeking comment, while was not reachable for comment. Modi's declined to comment saying he was yet to see the charge sheet.

Separately, India's secretary told media in that a government nominee on the board of state-run would soon call a meeting to seek the removal of Ananthasubramanian.

The owns controlling stakes in including and PNB.

PNB told on Monday it had relieved Rao and Sharan of their duties.

Indian authorities have arrested at least 20 people in the case and a court has issued non-bailable warrants against accused jewellers and his uncle The duo have denied the allegations against them, and authorities have said they both left the country before the fraud was uncovered.

Shares in Allahabad Bank closed 3.4 percent lower on Monday, while those in PNB ended slightly higher on the day.

(Reporting by Promit Mukherjee, Rajendra Jadhav, and in Mumbai, Prusty, Aditya Kalra and Krishna Das in New Delhi; Writing by Sankalp Phartiyal; Editing by and Mark Potter)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 18:49 IST
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