CBI sources say the role of other CEO and MD and CEO of PNB is also under their scanner
Diamond merchant Mehul Choksi and his companies under the Gitanjali Group, have been named in the supplementary charge sheet filed by the Central Bureau of Investigation in the over 2 billion dollar Punjab National Bank (PNB) fraud case.
In its charge sheet filed in the CBI special court in Mumbai, the agency has also charged 16 other entities on the charges of criminal conspiracy, cheating and provisions under the Prevention of Corruption Act.
In a statement, the CBI confirmed it had filed a supplementary charge sheet in the case, but did not name the accused.
The CBI had filed the first charge sheet against some former and current bank officials on Monday. Usha Ananthasubramanian, MD and CEO of Allahabad Bank, has been named in the charge sheet.
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 CBI in that charge sheet said Usha Ananthasubramaniam did not act to uncover the fraud in spite of warnings from the Reserve Bank of India. In 2016, a similar Letter of Undertaking bank fraud came to light at India Overseas Bank which PNB honoured.
After this fraud came to light, the RBI issued guidelines and additional circulars were also issued which Usha Ananthasubramanian was aware of. At that time, Ms Ananthasubramian sent a report saying there was no such fraud taking place at PNB, leading to suspicion against her.
CBI sources say the role of other CEO and MD and CEO of PNB is also under their scanner.
The CBI has submitted the 7500-page chargesheet in the alleged Rs 13,400 crore PNB fraud involving diamond merchants Nirav Modi and his uncle Mehul Choksi. This move came just days before the 90-day period to file charges against those arrested ends. Sources say this is being done so that the accused cannot seek bail on the grounds that the agency failed to file a charge sheet within the stipulated 90-day period.