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
March 21,2020

Beijing, Mar 21: China reported no domestically transmitted coronavirus cases for the third consecutive day even as seven more fatalities have been confirmed, taking the death toll in the country to 3255.

No new domestically transmitted cases of COVID-19 were reported on the Chinese mainland for the third day in a row on Friday, China's National Health Commission (NHC) said on Saturday.

The overall confirmed cases on the mainland had reached 81,008 by the end of Friday, which included 3,255 who died, 6,013 patients still undergoing treatment, 71,740 patients who had been discharged after recovery, the NHC said.

The NHC said 41 new confirmed COVID-19 cases were reported on the Chinese mainland on Friday from the people arriving from abroad, taking the total number of imported cases to 269.

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News Network
March 11,2020

Rome, Mar 11: Italy has recorded its deadliest day of the coronavirus crisis despite locking down the entire country, as New York deployed the National Guard to contain a disease that has sown worldwide panic.

The hardest-hit country in Europe said its death toll from the COVID-19 virus had risen Tuesday by a third to 631, with the surging epidemic taking its toll on global sporting, cultural and political events.

While authorities in China, where the outbreak began, have declared it "basically curbed", cases are multiplying around the world, sparking panic buying in shops, and wild swings on financial markets.

China remains the hardest-hit overall with more than 80,000 cases and over 3,000 deaths, out of a global total of 117,339 cases and 4,251 deaths across 107 countries and territories, according to an AFP tally.

The virus is infecting all walks of life, including politics, with US Democratic presidential hopefuls Bernie Sanders and Joe Biden both cancelling campaign rallies and British health minister Nadine Dorries saying she had tested positive.

And amid criticism of the US authorities' response, New York deployed the National Guard for the first time during the crisis to help contain the spread of the disease from an infection-hit suburb.

There have been 173 confirmed cases in New York state, including 108 in Westchester County, home to New Rochelle where the majority of infections have been detected.

"It is a dramatic action, but it is the largest cluster in the country. This is literally a matter of life and death," said state governor Andrew Cuomo.

"People are scared, it's an unusual situation to be in," Miles Goldberg, who runs a New Rochelle bar, told AFP.

"It makes people nervous to be around others, it makes people nervous to get inside into businesses and such," he said.

In an unprecedented move, Italian Prime Minister Giuseppe Conte has told the 60 million residents of his country they should travel only for the most urgent work or health reasons.

And while squares in Milan and Rome were emptied of their usual bustle and traffic, some residents appeared uncertain if they were even allowed to leave their homes for everyday tasks like shopping.

The virus has battered tourism around the world, as people scrap travel plans, and a restaurant owner in Florence in northern Italy said that the impact on business had been catastrophic.

"We hope that we will see the end of it, because from around 140 covers a day, this afternoon, we've gone down to 20-25," Agostino Ferrara told AFP.

Pope Francis also seemed to muddy the waters, holding a mass in which he urged priests to go out and visit the sick -- something Conte has specifically discouraged.

Sporting events continued to fall victim to the virus as authorities urge people to avoid large gatherings.

Arsenal's game at Manchester City was postponed after players from the London club were put into quarantine, making it the first Premier League fixture to be called off because of the virus.

The virus has sparked doubts about the Olympics due to open in Tokyo on July 24 and the traditional flame lighting ceremony in Greece is set to be held without spectators.

In the United States, organisers rescheduled the two-week Coachella music festival for October.

The virus and the response to the crisis has prompted pandemonium on global markets with volatility not seen since the world financial crisis in 2008.

After suffering its worst session in more than 11 years at the beginning of the week, the Dow Jones Index in New York bounced back significantly, rising five percent on Tuesday.

Politicians around the world have scrambled to put together emergency packages to ease the significant financial hardships the virus is expected to cause for households and businesses.

US President Donald Trump, who is relying on a strong economy to boost his re-election hopes, promised to announce "major" economic measures on Tuesday.

The biggest item on his wish list is a cut in payroll taxes. But even allies in Congress and reportedly some aides in the White House are sceptical, questioning the cost.

Italy prepared Tuesday to let families skip mortgage and some tax payments while Japan unveiled a second emergency package to tackle economic woes stemming from the outbreak, including $15 billion in loan programmes to support small businesses.

Analysts warned of further volatility ahead however.

"It's like winding up a rubber band. The more you wind it, when you let go, the more it pops," said LBBW's Karl Haeling.

"A lot of the uncertainty goes to the root of the virus itself."

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News Network
February 2,2020

Lucknow, Feb 2: In an early morning firing at Lucknow's Hazratganj, the city centre, Vishva Hindu Mahasabha state president Ranjit Bachchan was killed while he was out on a morning walk on Sunday.

Ranjit Bachchan was taking a stroll in Hazratganj in the morning when bike-borne assailants opened fire on him and killed him on the spot. The Mahasabha leader was shot in the head multiple times.

The incident took place near the CDRI building in Lucknow's Hazratganj.

In the firing, Ranjit Bachchan's brother also suffered bullet injuries. He has been rushed to the trauma centre. Ranjit Bachchan was a resident of Gorakhpur.

The early morning shootout in the Uttar Pradesh capital's central area has caused tension in the area.

Dinesh Singh, DCP Central Lucknow, said, "The body has been identified as of Ranjit Bachchan, who had gone out on morning walk when some unknown assailant shot him. A police team has been formed and further investigation is being carried out."

Before being associated with the Mahasabha, Ranjit Bachchan was a Samajwadi Party member and was often spotted with former UP chief minister Akhilesh Yadav.

The Samajwadi Party has hit out at the Yogi Adityanath government over the law and order situation in the state and demanded immediate resignation of the government.

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