CBI files 2nd chargesheet against Choksi

CBI files 2nd chargesheet against Choksi

CBI files 2nd chargesheet against Choksi

The CBI on Monday filed a chargesheet against Allahabad Bank MD and CEO Usha Ananthasubramanian and 21 others, including 11 bank officials, in the over Rs 13,000 crore Punjab National Bank fraud case in which diamantaire Nirav Modi and his uncle Mehul Choksi were allegedly involved. The chargesheet was filed before a special CBI court in Mumbai.

The agency also named PNB Executive Directors K.V. Brahmaji Rao and Sanjiv Sharan, and General Managers Nehal Ahad (who dealt in worldwide operations) and Rajesh Jindal in its chargesheet filed in a special CBI court here.

Ms Ananthasubramanian, who held the same position at Punjab National Bank in 2016, has been named along with three other top officials, including executive directors Sanjiv Sharan and Brahmaji Rao and Nehal Ahad.

The stock has been sliding consistently since the fourth week of January this year, that is, around the time news about Nirav Modi's liablities to the bank started flooding the market. Chitalia was a signing authority in Choksi's companies.

On the fraud front, the bank said the matter is under investigation. Reconciliation of SWIFT system and CBS was not done even after reminders from the RBI, he said.

The ED had registered the money laundering case against Nirav Modi and others on the basis of a CBI FIR.

The second largest state-owned bank came up with a loss figure of Rs 13,416.91 crore, biggest quantum of loss suffered by any banking entity for a quarter in the country. Now, the NY court where three of Nirav Modi's companies filed for bankruptcy has reportedly called for an investigation into the role of the bank's employees in the alleged fraud before deciding on proceedings.

The agency has alleged Rs 7080.86 crore were siphoned off by Choksi and his companies using 142 letters of undertaking (LoUs) and 58 foreign letters of credit, the officials said. The CBI has charged them for cheating, criminal breach of trust by public servant, or by banker, merchant or agent, punishment of criminal conspiracy and under various sections of Prevention of Corruption Act.

PNB had disclosed that two jeweler groups had defrauded it costing the bank a loss of $2 billion, raising credit overseas with fake guarantees issued by rogue PNB staff.

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