CBI questions former PNB MD

New Delhi: The CBI on Tuesday questioned the CEO and the MD of Allahabad Bank Usha Ananthasubramanian in connection with its investigation into the alleged Rs 12,636 crore PNB fraud case allegedly involving billionaire Nirav Modi and others.

Ms Ananthasubramanian, who was recently elected as the chief of Indian Banks’ Association, had held senior positions in the PNB where Mr Modi and Mehul Choksi were allegedly getting fraudulent guarantees since 2011, sources said.

Besides, in order to get further details on the loan and to get a clear trail of money used by Gitanjali group of Mr Choksi, the CBI also examined another noted banker, N.S. Kannan of ICICI Bank, sources said.

“CBI’s investigation into the account books of Mr Choksi’s companies showed loans worth over Rs 5,280 by a consortium of 34 banks led by ICICI bank. The exposure of the ICICI bank in the loan is Rs 773 crore. The ICICI bank is part of consortium which also includes several private and public sector banks including the PNB”, sources in the CBI clarified.

As far as questioning of Ms Ananthasubramanian is concerned, sources said, “She was the MD and CEO of PNB since August 14, 2015 before being appointed in Allahabad Bank on May 6, 2017. She also held the position of the ED of the bank from July 2011 to November 2013”. Sources further said she was not questioned as an accused but the agency wanted certain clarifications from her.

Five statutory auditors of PNB have also been questioned by the agency so far in connection with the case.

Talking to this newspaper a senior official of the agency said, “The agency has so far examined several serving and former officers of PNB. Besides, several private persons have also been examined by the CBI in connection with the case. It’s true that certain individuals are not co-operating and giving conflicting versions pertaining to the case forcing the agency sleuths to explore the possibility of subjecting them to a lie-detection test”.

He, however, refused to reveal the identity of those individuals who are giving conflicting statements.

The quantum of alleged fraud perpetrated in the bank by billionaire jewellers Mr Modi and Mr Choksi now stands at Rs 12,636 crore after the CBI officials and PNB found fresh Letters of Undertakings (LoUs) and Letters of Credit (LCs) worth Rs 1,251 crore related to Mr Choksi’s Gitanjali group of companies, sources said on Monday.