Allahabad Bank MD to stand trial in PNB fraud

Mumbai: The President of India has given sanction to prosecute Usha Ananthasubramaniam, the former managing director of Punjab National Bank and Allahabad Bank, in the multi-crore PNB bank fraud case. CBI counsel A. Limosin informed the court on Monday about the President's sanction, after which the special CBI Court took cognisance of it and issued orders for further process as a result of which she will stand trial in the case.  

On Monday, the government dismissed Mrs Ananthasubramanian from service, according to an official notification. The CBI, in its chargesheet in the PNB bank scam in May, had said that Ananthasubramanian as well as some other bank officials were allegedly aware of the “fraudulent” dealings with diamond merchant Nirav Modi but kept “misleading” the RBI.

She has been charged under section 409 (criminal breach of trust) and 420 (cheating) of IPC and Section 13(2) of the Prevention of Corruption Act. A. Limosin said that under section 19 of the Prevention of Corruption Act, the prior sanction from competent authorities is required for the court to take cognisance of an offence alleged to have been committed by a public servant. He also said that under section 197 of the CrPC, if a high ranking government servant is charged under IPC prior sanction is required.Three months ago, Mrs Ananthasubramanian was divested of all her powers as MD of Allahabad Bank, after being named in a CBI chargesheet in the Rs 14,000 crore PNB fraud case but had continued to be an employee. She was to superannuate on Monday. Mrs Ananthasubramanian headed the PNB  between August 2015 and May 2017.