The chargesheet basically deals with the first FIR registered in the case relating to the fraudulent issuance over Rs 6,000 crore of Letters of Undertaking to Diamond R US, Solar Exports and Stellar Diamonds.
Moneycontrol had reported that soon after the Central Bureau of Investigation (CBI) filed a chargesheet against current and former officials of Punjab National Bank (PNB) and Allahabad Bank, the Finance Ministry has directed both the banks" boards to "divest' these officials of their powers.
The two PNB executives and Ananthasubramanian did not respond to multiple calls and messages seeking comment, while Allahabad Bank was not reachable for comment. Fortytwo premises were searched and around 15 people have been arrested in the case. More than 80 witnesses have been examined.
In the charge sheet Nirav Modi has been named as 'wanted accused'.
The bank has made provisions of Rs 7,178 crore - amounting to 50% of the fraud amount. Crores were further channelled to overseas supplier firms set up by Nirav and his associates.
As per the quarterly number, the RBI detected a gross NPA divergence of Rs 2,207 crore during FY17.
The board of Allahabad Bank, which met on Tuesday, chose to strip the the function of its chief executive officer and managing director Usha AnanthaSubramanian, the bank informed the exchanges.
The department will not spare anyone involved in corruption and lapses, irrespective of his or her position and will take speedy action against them while honest officers have nothing to fear about, he said, adding the government would solidly stand behind honest officers.
The federal government owns controlling stakes in state-run lenders including Allahabad Bank and PNB.
The bank said that provisions worth Rs 3,120 crore have been made against accounts where stressed asset schemes were under implementation.
Ananthasubramanian was previously chairperson and managing director of Bharatiya Mahila Bank, country's first all-women bank, which was merged with State Bank of India in April 2017. Internal auditors Mohinder Sharma and Bishnubrata Mishra sat in the same room with Shetty, but did not point out the system failures or illegalities and chartered accountants did not raise red flags over unsecured loans.