PNB ex-executive director discharged, first in Nirav Modi case

MUMBAI: Calling into question CBI's "pick-and-choose policy", a special court recently discharged KV Brahmaji Rao, a former executive director of Punjab National Bank (PNB), seven years after he was first accused in the Rs 23,000-crore fraud case involving fugitive jewellery businessman Nirav Modi.Among the 25 accused individuals and companies in the case, Rao is the first to be discharged. The special CBI judge noted that Rao cannot be singled out and burdened with criminal liability. It is interesting to note that the prosecution had proceeded against the officials in a pick-and-choose manner...(in the Rs 23,000-crore PNB fraud case) The material shows that the prosecution has chosen to implicate only a few while leaving out others who stood on an identical footing in the decision-making process," special judge AV Gujarathi said.

The judge said by "no stretch of imagination" can it be said KV Brahmaji Rao derived any pecuniary benefit or acted in disregard of safeguards protecting public interest."Merely being an executive director of PNB and the fact that the implementation of RBI directives was delayed pursuant to a unilateral decision of the IT department and duly approved by the MD & CEO, sans any other allegation, does not constitute an offence of conspiracy and cheating.

Therefore, this court is of the view that no prima facie case is made out against the accused under any of the provisions invoked in the chargesheet," the judge said.The judge said the RBI's own complaint in 2018 before a magistrate's court in New Delhi excluded Rao but named other senior officials of the PNB - Usha Ananthsubramaniam, former MD and CEO, Sanjeev Sharan, executive director, and Nehal Ahad, general manager, international banking division - as accused.

The trio are also named as accused in the CBI case."Accused (Rao) was not directly working at the branch where the fraud was committed by employees of the bank. The accused was working in supervisory capacity. More than 7,000 branches were under his control. Under these circumstances, it is humanly impossible to keep eye on the transactions taking place in each and every branch," the judge said. The judge said the allegations against Rao were vague and unsupported by evidence and permitting the proceedings to continue would subject him to unwarranted harassment, contrary to the constitutional guarantee of fair procedure.

Refuting the allegations of Rao's role in criminal conspiracy, the judge said that "misgovernance or a brief breakdown of law and order does not equate to a criminal conspiracy at the highest level without clear evidence of concerted effort and a meeting of minds".