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NEW DELHI – India has fired two leaders of the state-run Punjab National Bank for failing to prevent a $ 2 billion fraud, two sources said Sunday, nearly a year after the biggest scam was revealed country's banking system and dragged it into controversy.
The dismissal of two executive directors, whom the federal police accused of violating central bank guidelines, is the first case of dismissal of bank employees since billionaire jeweler Nirav Modi and his uncle fraudulently collected billions of dollars in foreign credit by conspiring with the staff of the bank.
Modi and his uncle Mehul Choksi, who left India before the discovery of the fraud, denied the charges.
In a stock market statement on Friday night, the country's second-largest national bank said the government had dismissed K. Veera Brahmaji Rao and Sanjiv Sharan "from the position of executive director" with immediate effect. The deposit did not give any reason.
The government then fired them because they "did not use the SWIFT global payment network to detect fraud," said a banking source. Sources who had direct knowledge of the issue and refused to be identified because the reasons for the dismissal were not made public.
"They were not able to supervise and there had been a breach of their homework," said one of the sources, a government official.
The phone calls to PNB General Manager Sunil Mehta, as well as to Rao and Sharan remained unanswered.
The bank, aged 124, has reinstated in the last 21 months most of the 21 employees suspended as soon as the swindle was made public as they were not charged by the police.
India has issued non-punishable warrants against Modi and Choksi and Interpol's red notices are also published, but their main by-pbad of the law is being used by the main congressional opposition party to target Bharatiya Janata Party (BJP) of Prime Minister Narendra Modi. before the general election in May.
"Your money, the money of our tribal brothers, our lower castes and our farmers have been taken away and you did not even realize it," said Congress President Rahul Gandhi at 39, an election rally organized at the end of last year. "Nirav Modi 's escaped after taking the money, Mehul Choksi also escaped with him.
The BJP, meanwhile, says that the fraud began when Congress was in power. – Reuters
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