Govt sacks 2 PNB executive directors in Nirav Modi case
Axed For Not Exercizing Proper Control Of Ops
TIMES NEWS NETWORK
Mumbai:20.01.2019
Two executive directors of Punjab National Bank have been dismissed by the government for not exercising proper control of operations leading to the ₹14,000-crore
Nirav Modi
scam which came to light in January 2018.
Of the two, K Veera Brahmaji Rao has been sacked just days ahead of his retirement on January 22. Sanjiv Sharan is due to retire in May 2019.
The government had showcaused the two, asking why they should not be removed for “failing in exercising proper control over the functioning of PNB while serving as its Executive Director, which enabled the fraud through misuse of SWIFT at the bank’s Brady House branch” in Mumbai.
The notification is subject to the outcome of a writ petition filed by Rao in the Delhi HC.
Rao was appointed executive director in January 2014, before which he was with Vijaya Bank. In PNB, he was responsible for multiple divisions, including risk management, treasury and operations. Sharan was general manager with PNB before being elevated as executive director on September 2016.
Former PNB deputy manager Gokulnath Shetty, a prime accused in the scam, had confessed to misusing the bank’s SWIFT messaging system to issue unauthorized bank guarantees since 2011. Investigating agencies have said that lapses by successive management enabled the fraud to continue.
In August 2018, the government had sacked former PNB CEO Usha Ananthasubramanian in the Modi scam. She was dismissed on her last day in office, which she was serving as MD and CEO of Allahabad Bank. According to bankers, the government appears to be sending out a message that it is taking a tough stance by not allowing the senior executives to retire. The CBI has filed a chargesheet in the investigation and is currently probing senior executives.
On Friday, the RBI governor spoke about the need to improve corporate governance in banks. “Incidence of financial frauds in recent times further underscores the significance of sound corporate governance standards in banks. The government, the Bank Board Bureau and the Reserve Bank are currently engaged in developing an objective framework for performance evaluation and this should redefine the contours of corporate governance in the public sector banks with a focus on transparency, accountability and skills,” he said.
K Veera Brahmaji Rao has been sacked just days ahead of his retirement on January 22. Sanjiv Sharan is due to retire in May 2019. Investigating agencies have said that lapses by successive management enabled the fraud to co
Axed For Not Exercizing Proper Control Of Ops
TIMES NEWS NETWORK
Mumbai:20.01.2019
Two executive directors of Punjab National Bank have been dismissed by the government for not exercising proper control of operations leading to the ₹14,000-crore
Nirav Modi
scam which came to light in January 2018.
Of the two, K Veera Brahmaji Rao has been sacked just days ahead of his retirement on January 22. Sanjiv Sharan is due to retire in May 2019.
The government had showcaused the two, asking why they should not be removed for “failing in exercising proper control over the functioning of PNB while serving as its Executive Director, which enabled the fraud through misuse of SWIFT at the bank’s Brady House branch” in Mumbai.
The notification is subject to the outcome of a writ petition filed by Rao in the Delhi HC.
Rao was appointed executive director in January 2014, before which he was with Vijaya Bank. In PNB, he was responsible for multiple divisions, including risk management, treasury and operations. Sharan was general manager with PNB before being elevated as executive director on September 2016.
Former PNB deputy manager Gokulnath Shetty, a prime accused in the scam, had confessed to misusing the bank’s SWIFT messaging system to issue unauthorized bank guarantees since 2011. Investigating agencies have said that lapses by successive management enabled the fraud to continue.
In August 2018, the government had sacked former PNB CEO Usha Ananthasubramanian in the Modi scam. She was dismissed on her last day in office, which she was serving as MD and CEO of Allahabad Bank. According to bankers, the government appears to be sending out a message that it is taking a tough stance by not allowing the senior executives to retire. The CBI has filed a chargesheet in the investigation and is currently probing senior executives.
On Friday, the RBI governor spoke about the need to improve corporate governance in banks. “Incidence of financial frauds in recent times further underscores the significance of sound corporate governance standards in banks. The government, the Bank Board Bureau and the Reserve Bank are currently engaged in developing an objective framework for performance evaluation and this should redefine the contours of corporate governance in the public sector banks with a focus on transparency, accountability and skills,” he said.
K Veera Brahmaji Rao has been sacked just days ahead of his retirement on January 22. Sanjiv Sharan is due to retire in May 2019. Investigating agencies have said that lapses by successive management enabled the fraud to co
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