By PTI
NEW DELHI: The Delhi High Court Friday sought Centre’s response on a plea by Usha Ananathasubramanian against her dismissal from the post of MD and CEO of Allahabad Bank following the country’s biggest bank fraud allegedly carried out by Nirav Modi and associates at Punjab National Bank (PNB).
Ananathasubramanian, who enjoyed the same position at PNB before moving to Allahabad Bank, was named in the CBI charge sheet in connection with the Rs 14,000 crore PNB fraud which was unearthed in January 2018.
Justice V Kameswar Rao issued notice on the petition and listed the matter for further hearing on April 18.
Ananathasubramanian, represented by lawyer Anshumaan Sahni, has challenged the government’s decision on the ground that it is arbitrary and that she could not have been terminated from her service at Allahabad Bank on the basis of her tenure at PNB.
In August 2018, she was dismissed with immediate effect from the Allahabad Bank on the allegation that she failed to exercise proper control over the functioning of PNB while serving as MD of the bank.
Ananthasubramanian had enjoyed leadership roles in PNB in two stints. She headed the bank between August 2015 and May 2017, before moving to Allahabad Bank. She was executive director at the bank from July 2011 to November 2013.
Nirav Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of about Rs 14,000 crore through the issuance of fraudulent letters of undertaking (LoU).
A Mumbai branch of PNB had fraudulently issued LoUs for the group of companies belonging to Modi since March 2011.
Three months before her dismissal, Ananthasubramanian was divested of her powers as MD and CEO Allahabad Bank.
