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

IANS  |  Mumbai 

The CBI on Monday filed a chargesheet against MD and and 21 others, including 11 bank officials, in the over Rs 13,000 crore (PNB) fraud case in which diamantaire and his uncle Choksi were allegedly involved.

Ananthasubramanian, who was questioned by the (CBI) in connection with the case, was the (MD) and Chief (CEO) of PNB between August 2015 before her appointment in the in May 2017.

The agency also named Directors and Sanjiv Sharan, and (who dealt in international operations) and in its chargesheet filed in a special CBI court here.

CBI officials said the chargesheet names and his brother in connection with the issuance of Letters of Undertaking (LoUs) totalling Rs 6,498.20 crore during 2011-17.

They said that a separate chargesheet in the second case involving Choksi will be filed later.

The officials said and were beneficiaries of the fraud, authorised signatories, and in the know of the whole scam.

The CBI had filed three FIRs between January and March to probe the PNB fraud. Most of the accused are common to these cases.

The chargesheet filed on Monday is based on CBI's FIR registered on January 31 against Nirav Modi, his wife Ami, brother Nishal, and uncle Choksi, among others. The second and third FIRs focus on Choksi, and others.

So far, 15 persons have been arrested while Modi and Choksi fled the country in January.

Modi's group companies -- Diamonds R US, Stellar Diamonds, and Solar Exports -- are also named in the chargesheet as borrowers.

Seven employees of Modi's group of companies -- Hemant Bhat, an authorised signatory; Vipul Ambani, (Finance) of Firestar International; Miten Pandya, then Finance of Firestar; Manish Bosamiya, former AGM of Firestar; Subhash Parab, key (currently absconding); and and -- were also named in the chargesheet.

Accountant is also named in the chargesheet, which also mentions then PNB employees Gokul Nath Shetty (Deputy Manager), who was the first to be arrested, (Single Window Operator), (Chief Manager), (Manager), (Officer) and Auditors and

The chargesheet says that Nirav Modi, Nishal, and other public and private persons conspired for the issuance of fraudulent LoUs in favour of the three firms (named in the chargesheet) without any sanctioned limit, cash margin and making entries in the Core Banking Solution (CBS) system.

Investigators found that the funds were siphoned off to purported overseas supplier firms that was a set-up by Nirav Modi and his firms.

"Senior officials of the PNB did not implement Reserve Bank of (RBI) circulars on the matter and misrepresented the facts. Reconciliation of SWIFT (Society for Worldwide Inter-Bank Financial Telecommunication) messaging system was not done despite repeated caution notices of the RBI," a CBI said.

CBI said that the CBI has searched 42 premises, arrested 15 persons and questioned 80 witnesses in the case.

A similar fraud was detected in 2016, in which funds under the garb of LoUs were transferred in favour of a Hong-Kong-based company, purportedly issued by the Chandigarh branch of a to overseas branches of two other nationalised banks, including PNB. Ananthasubramanian was the of the PNB at that point in time, said the CBI.

"Ananthasubramanian and her team was in the knowledge of the crime. She along with other bank officials has been named in the chargesheet as they could not give satisfactory replies in regard to the case during questioning by the agency," the CBI added.



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

First Published: Mon, May 14 2018. 20:42 IST