PNB Scam: CBI files chargesheet against Nirav Modi, Mehul Choksi


As the reports suggest, more officials from the bank could be named in the chargesheet, however, their names have not been clarified by the authorities yet.

After three FIRs and 19 arrests, the CBI is all set to file its first chargesheet in the Rs. 12,600cr Punjab National Bank (PNB) loan fraud case involving jewellers Nirav Modi and Mehul Choksi.

In its 7500-page charge sheet, the CBI had accused 25 people, including Usha Ananthasubramanian, the chief executive officer (CEO) and managing director of PNB when the fraud was perpetrated. The amount of Rs 6,498.2 crore is one part of the bigger $2-billion fraud.

For the unversed, the PNB in February detected the multi-crore scam, wherein Diamantaire Nirav Modi and his uncle cum business partner Mehul Choksi had allegedly cheated the bank to the tune of Rs. 114 billion, with the purported involvement of a few employees of the bank.

Two other PNB executive directors (EDs), K V Brahmaiji Rao and Sanjiv Sharan, were expelled soon after the charge sheet was submitted, the bank said in a filing to the stock exchanges late last night. The chargesheet also made accused three companies namely Diamond R US, Solar exports and Stellar Diamonds of Nirav Modi.

The officials said Nirav Modi and Nishal were beneficiaries of the fraud, authorised signatories, and in the know of the whole scam. "Till date, around 80 witnesses have been examined", a CBI spokesperson said.

The chargesheet, filed in a special court in Mumbai, also names several other top officials of the bank. The transactions happened without any sanctioned limit or cash margin and without making any entries in the bank's CBS system.

Non-interest income or other income is projected to decline by to Rs 2,367.3 crore from Rs 3,102.80 crore, as per the same Reuters estimates. Ananthasubramanian was the MD and CEO of PNB from 2015 to 2017 and was recently questioned by the CBI in connection with the case.

The department will not spare anyone involved in corruption and lapses, irrespective of his or her position and will take speedy action against them while honest officers have nothing to fear about, he said, adding the government would solidly stand behind honest officers.

Shares in Allahabad Bank fell as much as 5 percent on Monday.