Former Allahabad Bank Managing Director Usha Ananthasubramanian was dismissed by the central government on Monday, on the day she was to superannuate from service, said an official notification.
In May this year, Ananthasubramanian had been divested of all her powers as MD of Allahabad Bank after being named in a Central Bureau of Investigation (CBI) chargesheet in the Rs 14,000 crore Punjab National Bank (PNB) fraud allegedly committed by absconding diamantaire Nirav Modi, but had continued to remain an employee of the bank, reported news agency IANS.
Between August 2015 and May 2017, she was Chief Executive of the PNB before moving to Allahabad Bank. From July 2011 to November 2013, she was Executive Director at PNB.
Official sources said on Monday that government has given permission to the CBI to prosecute Ananthasubramanian and former PNB Executive Director Sanjiv Sharan in the scam in which Modi's uncle Mehul Choksi is co-accused and who is also absconding, news agency further reported.
The CBI, in the chargesheet filed in May in a Mumbai court, had alleged that she and other senior PNB officials were aware of the scam going on for some time but did not take any step to correct it.