PNB Scam: Former CEO Of Bank Was Aware Of Fraud, Says CBI

Agencies
May 22, 2018

May 22: Former Managing Director and Chief Executive Officer of Punjab National Bank Usha Ananthasubramanian and some other senior bank officials were aware of the "fraudulent" dealings with diamond merchant Nirav Modi but kept "misleading" the RBI, the CBI has alleged in its charge sheet.

A special CBI court took cognizance of the charge sheet today and permitted the investigating agency to issue fresh non-bailable warrants against Nirav Modi, his brother Nishal and an executive of the Nirav Modi Group Subhash Parab.

In its charge sheet into the Rs 14,000 crore scam, the CBI said the RBI had since October 2016 sent several questionnaires to the PNB, seeking to know what procedures or measures the bank follows before issuing 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 12,000-page charge sheet further claimed that a similar fraud was detected in 2016 following which the RBI took up the issue and issued circulars to all banks.

"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.

From August 2015 to May 2017, when Ananthasubramanian was the MD and CEO of the PNB, relevant circulars, caution notices and urgent questionnaires issued by the RBI were brought to her notice and she dealt with the same, the CBI said.

Inspite of her knowledge about the modus operandi in these frauds, she (Ananthasubramanian) did not take any meaningful corrective measures in her capacity as the executive head of the bank and had unauthorizedly delegated the RBI guidelines work to her subordinates without any follow up action.

The CBI has further claimed that senior officers from the Nirav Modi Group including accused Vipul Ambani were constantly meeting Ananthasubramanian in order to continue with the credit facilities to the group.

"This indicated clearly that she (Ananthasubramanian) was aware of the facilities extended to the various group entities of Modi," it said.

The agency said the accused bank officials held supervisory roles in the bank and had through their acts facilitated the issuance of the fraudulent LOUs.

"The fact that bank official Gokulnath Shetty continued to issue fraudulent LOUs with impunity despite issuance of several RBI circulars indicates an environment of protection he enjoyed in the form of lack of reconciliation and absence of bank visits by seniors," the CBI said.

The patronage extended by the senior officials of the bank to the accused persons working in the PNB Brady House branch of Mumbai resulted in a huge wrongful loss to the bank and wrongful gain to the accused persons, it said.

MD and CEO Usha Ananthasubramanian and other senior bank officials by failing to take any precautions or preventive steps to prevent the fraud perpetrated by firms controlled by Nirav Modi thereby committed criminal misconduct in conspiracy with the other accused persons.

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News Network
July 20,2020

New Delhi, Jul 20: India's COVID-19 case tally crossed the 11 lakh mark with the highest single-day spike of 40,425 new cases and 681 deaths reported in the last 24 hours, informed the Union Health and Family Welfare Ministry on Monday.

Total cases in the country now stand at 11,18,043 while the death toll is 27,497.
The Health Ministry said the total number of cases includes 3,90,459 active cases and 7,00,087 patients have been cured/discharged/migrated.

Maharashtra remains the worst affected state with 3,10,455 cases reported until Sunday.
Meanwhile, as per the information provided by the Indian Council of Medical Research (ICMR), 1,40,47,908 samples have been tested for COVID-19 till July 19, of these 2,56,039 samples were tested yesterday.

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News Network
January 30,2020

Baharampore, Jan 30: Two persons were killed and one was injured in a clash over a protest programme against the CAA and the proposed NRC in West Bengal's Murshidabad district on Wednesday, police said.

The incident occured after an argument broke out between the two sides at Jalangi over a protest programme opposing Citizenship Amendment Act.

According to the police, a scuffle broke out between the local TMC leaders and residents' forum 'Nagarik Mancha', which was observing a shutdown in the area against the amended citizenship act and the proposed country-wide NRC.

The residents' forum was asked to withdraw the shutdown and the situation turned violent as both sides came to blows and hurled bombs at each other. Several two-wheelers and cars were damaged and set on fire during the clash.

Local TMC MP Abu Taher, denied that the party was involved in the clash and alleged that the violence was by Congress and CPI(M) supporters.

"I have requested the police to look into the incident. The culprits should be immediately arrested," he said.

Senior Congress leader and MLA Manoj Chakraborty said that the party was not involved in the incident and demanded judicial inquiry into it.

The injured have been rushed to Murshidabad Medical College and Hospital here, the police said.

The Muslim-majority district had witnessed violence and arson during the anti-CAA protests across the state in December last year.

West Bengal became the fourth state after Left-ruled Kerala, and Punjab and Rajasthan, where the Congress is in power, to have passed a resolution on January 27 against the Citizenship (Amendment) Act. The state assembly had on September 6, 2019, passed a resolution against NRC.

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Agencies
May 28,2020

Kochi, May 28: In these pandemic times, when the businesses are gravely affected and the MSMEs are particularly feeling the heat, a Kerala institute has come up with an initiative to help the distressed industry. The Institute of Small Enterprises and Development (ISED) has come out with a unique platform -- 'business clinic' for extending advisory services to the COVID-19 affected MSMEs in the state.

The Kochi based ISED's multi-disciplinary team of experts will offer free guidance to entrepreneurs to make a self-evaluation for improving their performance.

It will serve the interests of the MSMEs, entrepreneurial aspirants, such as the returning migrants, start-ups, educated unemployed, and women entrepreneurs.

ISED director, PM Mathew said COVID-19 pandemic has shattered the budgets and operations of most SMEs, globally, as also in India.

"Post-lockdown, the operational problems are likely to get aggravated. Beyond the broad macro level projections and debates, it is now time to act at the grassroots level. Many entrepreneurs need appropriate clinical assessment, and moral and psychological support, said Mathew.

According to the work force participation data at the national level, Kerala is ranked 31 in terms of the number of self employed, and placed in second rank in relation to the size of casual labour.

The Kerala Enterprise Development Report, brought out by the ISED states while the number of the unregistered enterprises is sizeable, constituting 76.85 % of the total, the respective share of registered MSMEs is only 9.53 %.

The constraints to these enterprises today are, poor sales, large inventory, delayed payments, damage of stock, wage bill arrears, unreliable labour supplies, fund diversion due to exigencies, GST related problems, and NPA/poor credit score.

"For all businesses, unlike in a sporadic recession in the economy, the danger today is circular and cumulative. Both from the demand side, and the supply angle, there is a serious contraction of business activities, which essentially means a glut in the cash flow. Corporate businesses, obviously, will come out of the mess due to their relative advantages of high reserve funds, liberal credit offerings, and easier access to alternative sources of finance," said Mathew.

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