PNB scam: Court takes cognisance of Prez sanction to prosecute Ananthasubramanian

A special CBI court today took cognisance of the sanction granted by the President to prosecute Usha Ananthasubramanian, former managing director of Punjab National Bank and Allahabad Bank, in the Rs 14,000 crore PNB scam.

Ananthasubramanian was today dismissed from service by the government, according to an official notification. She was to superannuate today.

Prior sanction from competent authorities is required for the court to take cognisance of an offence alleged to have been committed by a public servant under the provisions of Prevention of Corruption Act as well as the Indian Penal Code.

Judge J C Jagadale of the special CBI court today took cognisance of the President's sanction to prosecute Ananthasubramanian under section 19(1)(A) of the Prevention of Corruption Act and section 197 of the Code of Criminal Procedure (CrPC), the agency's counsel said.

He said that the special CBI court would now proceed with the matter and accordingly she will have to appear before it.

Ananthasubramanian can apply for bail and the trial would then begin, he added.

Ananthasubramanian was three months back divested of all her powers as MD of Allahabad Bank, after being named in a CBI charge sheet in the Rs 14,000 crore PNB fraud case but had continued to be an employee of the bank.

Ananthasubramanian had enjoyed leadership roles in PNB in two stints. She headed the bank between August 2015 and May 2017, before moving to Allahabad Bank.

The CBI, in its charge sheet in the PNB bank scam, has said that Ananthasubramanian as well as some other bank officials were aware of the "fraudulent" dealings with diamond merchant Nirav Modi but kept "misleading" the RBI.

She has been charged under section 409 (criminal breach of trust) and 420 (cheating) of IPC and Section 13(2) of the Prevention of Corruption Act.