Mumbai: The Central Bureau of Investigation(CBI) on Monday filed its first chargesheet against fugitive diamond merchant Nirav Modi and others in the case related to the Punjab National Bank scam.
The chargesheet has detailed the alleged involvement of former PNB chief Usha Ananthasubramanian, who is now Allahabad Bank CEO and MD.
The government has also asked the Allahabad Bank board to take away all the powers of its CEO and MD in connection with the scam.
In March 2018, the Reserve Bank of India scrapped banking instruments such as the Letter of understanding (LoU) and Letter of Comfort (LoC) that in an attempt to plug a loophole and improve banks’ due diligence in trade credit.
The PNB scam relates to fraudulent letter of undertaking worth of Rs 11, 600 crore issues by Punjab National Bank, making PNB potentially liable for the amount. The fraudulent transactions are allegedly connected to the jeweller, Nirav Modi.
