A notice has been issued by the Delhi High Court against the termination of Usha Ananthasubramanian (served 8 minutes prior to the end of her term) by Allahabad Bank without any particular reason.
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Former MD & CEO of Allahabad Bank Usha Ananthasubramanian has moved the Delhi High Court challenging her termination in 2018 on account of her alleged involvement in the PNB Scam.
Ananthasubramanian had served as CEO and MD of Punjab National Bank between August 2015 and May 2017, before moving to Allahabad Bank.
CONTENTIONS OF THE PLAINTIFF
Ananthasubramanian has alleged that she was served a termination notice 8 minutes before her term came to an end at Allahabad Bank, and that no proper reasons were furnished by the Bank while doing so.
Allahabad Bank dismissed her services in order to secure its interest after she was named in a Central Bureau of Investigation (CBI) chargesheet in relation to the ₹13,500-crore PNB scam.
REASON GIVEN BY THE BANK
It is her claim that she was served a show cause notice stating that she failed to exercise proper control over the functioning of Punjab National Bank (PNB) while serving as its MD & CEO, which enabled Nirav Modi's fraud at PNB’s Brady House branch in Mumbai to go undetected for several years.
2019 DELHI HIGH COURT ORDER
In 2019, the Delhi High Court had stayed trial court proceedings against Ananthasubramanian in a case pertaining to an alleged violation of Section 46 of the Banking Regulation Act, 1949 in the backdrop of the PNB scam.
SUPREME COURT JUDGMENT
In February 2020, the Supreme Court set aside the order of the National Company Law Appellate Tribunal (NCLAT) which directed freezing of her assets.
The matter was heard by Justice Kameswar Rao who issued notice and placed it for further hearing on April 18, 2022.