A Delhi court has summoned the former managing director of Punjab National Bank (PNB) and 10 other senior officials of the bank in connection with the Rs 14,000 crore fraud at the bank. The bank’s former MD was charged by the CBI for the Nirav Modi fraud case during her tenure at PNB between August 2015 to May 2017.
Metropolitan Magistrate Dharmender Singh issued the summons against the accused persons, seeking their appearance on May 24 for alleged violations of Section 46 of the Banking Regulation Act.
The summons order were issued in a complaint by the Reserve Bank of India against the backdrop of the multi-crore PNB scam that broke in January 2018.
“In view of the facts stated in the complaint and documents filed on record on behalf of complaint, case is made out for summoning of all the proposed accused persons in respect of offences u/s 46 of Banking Regulation Act, 1949, so, they be summoned on filing of PF/RC for NDOH i.e. 24.05.2019.”, the order, passed on March 11 read.
The RBI has contended that all the accused persons deliberately furnished false and misleading statements to it, which was done with common intention and in connivance with each other. The conduct, the RBI claims, is in violation of Section 46 of Banking Regulation Act and Section 120B of the Indian Penal Code, 1860.
The Reserve Bank, which controls the issuance and supply of the Indian rupee, informed the trial court that on August 3, 2016, the accused had issued a “confidential circular” to all scheduled commercial banks advising them to strengthen the controls around the operating environment for fund transfers through SWIFT or similar interfaces
It said in its complaint that the banks were then advised to minimise the practice of direct creation of payment messages in the SWIFT environment with routing the same through Core Banking System (CBS).