A few former officials of India's Punjab National Bank (PNB) were aware of fraudulent dealings with celebrity jeweler Nirav Modi, but they kept misleading the Reserve Bank of India, the country's investigating agency CBI said in its charge sheet.
Usha Ananthasubramanian, former managing director and chief executive officer of PNB, has been named in the charge sheet.
The CBI, in its charge sheet, stated that despite a similar fraud being detected in 2016, Ananthasubramanian and a few other senior officials did nothing to correct the issue.
"The accused PNB officials, including Ananthasubramanian and others, were aware of this fraud involving PNB Dubai and the Indian Overseas Bank Chandigarh and yet they did not take any corrective action and remained silent spectators. This facilitated continuance of the fraud resulting in wrongful loss to the PNB," it said.
The RBI has, since October 2016, sent several inquiries to PNB to find out the procedure the bank follows before it issues Letters of Understandings and Letters of Credit.
"This was duly dealt by accused Ananthasubramanian and the bank’s executive directors – KV Brahmaji Rao, Sanjiv Sharan and Nehal Ahad – and instead of replying to the queries in true spirit and facts, Ahad and the general manager of the International Banking Division of the bank’s headquarters prepared a misleading reply and sent it to the RBI after getting the same approved from Sharan," the CBI said in its charge sheet.
Senior officers from the Nirav Modi Group were also in constant touch with Ananthasubramanian to continue with the credit facilities to the group, the CBI said.
"This indicated clearly that she (Ananthasubramanian) was aware of the facilities extended to the various group entities of Modi," it said.
Fresh non-bailable warrants against Nirav Modi, his brother Nishal and an executive of the Nirav Modi Group Subhash Parab has been issued. Modi, who left India before the Rs 14,000 crore scam came to light, has repeatedly refused to co-operate with the country's investigating agencies.
