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The Centre has sacked two Executive Directors of Punjab National Bank — Sanjiv Sharan and K.V.Brahmaji Rao — a little over six months after show cause letters were issued to them in the Nirav Modi and Mehul Choksi perpetrated scam.
Rao’s removal is, however, subject to outcome of the writ petition filed by him in the Delhi High Court against the Central Government, the Department of Financial Services said in an order issued on Friday.
It may be recalled that the show cause letters issued to Sanjiv Sharan and Brahmaji Rao had sought explanation as to why removal action should not be taken against them for having failed to exercise proper control of Punjab National Bank while serving as Executive Directors, which enabled fraud in the bank, through misuse of SWIFT at the bank’s Brady House branch in Mumbai, to persist undetected for several years, snowballing into a large amount.
While Sanjiv Sharan was to superannuate in end-May 2019, Brahmaji Rao’s five-year tenure as ED was to end on January 22 this year. Following their removal, both will not be entitled to their retirement benefits, sources in the banking industry said.
Reacting to the latest Government action to remove these two Executive Directors, C.H.Venkatachalam, General Secretary, All India Bank Employees’ Association (AIBEA) said: “We welcome the latest move to remove these two Executive Directors. We had long been demanding action against bank officials who had failed in their duty and allowed the Nirav Modi scam to happen”.
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