CBI files charge sheet in Nirav Modi case, names PNB ex chief, senior officials

The CBI today filed its first charge sheet in the country's largest financial scam worth over USD Rs 2 billion in Punjab National Bank by billionaire jeweller Nirav Modi, detailing the alleged role of the bank's former chief Usha Ananthasubramanian, who is now Allahabad Bank CEO and Managing Director, officials said.

Sources told Moneycontrol that CBI has filed a charge sheet against Usha Ananthasubramanian, the former Managing Director of PNB and KV Brahmaji Rao Executive Director of PNB.

Sources said Usha Ananthasubramanian was aware of a similar LoU fraud that came to light in Indian Overseas Bank in 2016. The RBI had issued guidelines as well as asked PNB regarding the same, however, Nehal Ahad, then general manager sent report denying the existence of a fraud taking place at PNB, allegedly at the behest of Ananthasubramaniam.

Allahabad Bank has reportedly said that it has not received any formal communication yet on the CBI charging the bank's CEO. The bank's board will meet tomorrow to discuss the matter.

Nirav Modi and Nishal Modi were the beneficiaries and Kavita Manikar and Hemant Bhat were the authorised signatories. Vipul Ambani allegedly hit documents despite being aware of the illegality.

The role of another former CEO and MD of PNB is also under the scanner. "Two internal auditor of PNB Mohinder Sharka and Vishnu Mishra, used to sit in the same room with Gokulnath Shetty. They were responsible for pointing out the system failure," sources said.

Unsecured loans worth Rs 1,700 crore per company were taken but it never reflected in the audit report. Next charge sheet will likely mention the role of overseas bank officials, while the role of RBI officials are underway.

The charge sheet mentions a total fraud of Rs 6,498 crore through the issuance of LoUs to three firms of Nirav Modi, without any sanction limit or cash margin and with no enteries in the core banking solutions (CBS) system of PNB.

Subhash Param, Nishal Modi, Nirav Modi are listed as absconding in the charge sheet and around 220 documents have been submitted as evidence in the case.

CBI has filed a charge sheet against 22 persons and three firms under Section 409 and 420— Diamond R US, Solar Exports and Stellar Diamonds.

A charge sheet was also filed against Manish K Bosamiya (then AGM (operations) of Firestar International Limited), Miten Anil Pandya (Finance Manager), Vipul Ambani (President, finance, the Firestar International), Kavita Mankikar (executive assistant and authorised signatory of three firms of Nirav Modi) and Arjun Patil, (senior executive, Firestar Group).

Other names in the CBI charge sheet include Gokulnath Shetty (former deputy general manager of PNB), Manoj Kharat (single window operator of PNB), Hemant Bhat (authorised signatory of Modi's company), Bramhaji Rao (executive director), Nehal Awad (executive director), Rajesh Jinal (general manager), Bechhu Tiwari (then chief manager in the forex department of PNB), Yashwant Joshi (scale II manager in forex department), and Praful Sawant (scale-I officer handling exports section), Mohinder Sharma and Vishnu Mishra (Internal Chief Auditor) and Sanjay Kumar (CA)

Mehul Choksi and Ami Modi are listed as co-accused but a charge sheet against them will be filed on May 19.

Sources added that the CBI had questioned some PNB officials a few days back over the PNB fraud and SWIFT issue and it divested all the powers of Executive Directors of PNB as well as Allahabad bank.

The body has sought an explanation from the current CEO of Allahabad bank Usha Ananthasubramanian. Disciplinary action has been initiated against the two executive directors of PNB and Allahabad bank's CEO.

Ananthasubramanian was the MD and CEO of PNB from 2015 to 2017 and was questioned recently by the CBI in connection with the case.

The agency has also named PNB executive director Sanjiv Sharan, and general manager (international operations) Nehal Ahad in its charge sheet.

The agency has detailed the roles of Nirav Modi, his brother Nishal Modi and Subhash Parab, an executive in Nirav Modi's company, officials said.

The charge sheet basically deals with the first FIR registered in the case relating to the fraudulent issuance over Rs 6,000 crore of Letters of Undertaking to Diamond R US, Solar Exports and Stellar Diamonds.

The agency has not given in detail the role of Mehul Choksi in the present charge sheet. It is likely to come up when the CBI files supplementary charge sheets in the case related to the probe of the Gitanjali group.

The CBI has registered three separate FIRs in connection with the alleged fraud in the public sector bank by the companies of the nephew-uncle duo of Modi and Choksi.

Both Modi and Choksi had left the country before PNB filed the complaint with the CBI.