The CBI has not given in detail the role of Mehul Choksi in the charge sheet. The voluminous chargesheet names 25 accused including Usha Ananthasubramanian, MD & CEO of Allahabad Bank, two Executive Directors of PNB, Brahmaji Rao and Sanjeev Saran and its General Manager Nehal Ahad and Modi's three firms - Stellar Diamonds, Solar Exports and Diamond R' US. "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.
The board of has been asked to take away all powers from, CEO and MD of the bank, the Financial Services Secretary said on Monday, while briefing the media on the multi-crore Punjab National Bank () fraud.
Allahabad Bank called the board meeting late Monday, two people in the know said.
He also said state-run PNB had begun the process of removing two executive directors, without naming the executives or saying why the three were being ousted. "In fact, it is also believed that it was communicated to the central bank that all was well at PNB with regards to SWIFT", a former PNB bank executive told Quartz.More news: Arsenal boss Arsene Wenger reveals his special India connect
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The chargesheet, filed in a Mumbai court, detailed the alleged role of the PNB's former chief Usha Ananthasubramanian.
In the year-ago quarter ending March 2017, the second largest public sector bank had turned around due to write-back in pension provisions to report a profit of Rs 261.9 crore as against a massive loss of Rs 5,367.1 crore, the biggest loss among banks since the clean-up exercises started in 2015.
Jeweller Nirav Modi used fake letter of undertaking (LoUs) to defraud PNB of over Rs 13,000 crore in connivance with bank officials by exploiting the loophole of non-integration of SWIFT with the Core Banking Solution. Section 8 of Banking Regulation Act define how do you remove the director. "Agencies have filed chargesheets against bank management teams, there should not be any integrity issues in PSBs", Kumar said. "We will only take action when we have substantive proof and not on hearsay", he said. "They misinterpreted the directives", a CBI officer said. She was questioned recently by the CBI in connection with the case. The stock exchanges had asked a query from the bank asking if its CEO was charged by CBI in the PNB fraud.