Why UCO Bank CEO is Facing CBI Chargesheet? Know about Rs.150 Crore Fraud Case in PNB

A major controversy has emerged in the banking sector as the CEO of a state-owned bank (UCO Bank) continues to remain in office despite a CBI chargesheet filed against him a year ago. Ashwani Kumar, the current MD and CEO of UCO Bank, was named by the Central Bureau of Investigation for allegedly approving export bill discounting for Lal Sons Jewellers in 2014 in violation of lending norms, when he was heading the Large Corporates Branch of Oriental Bank of Commerce (OBC). OBC Bank was later merged by the Government with Punjab National Bank (PNB) in 2020. The loan later turned into a non-performing asset, causing a loss of around ₹150 crore to the bank. The investigation by CBI is still ongoing.

What has raised eyebrows across the banking sector is that Ashwani Kumar continues to hold one of the most powerful positions in a public sector bank despite an active CBI case. As per a report published by ET – Senior bankers have pointed out that this goes against Central Vigilance Commission guidelines, which state that any official under investigation should not occupy a key post. As per sources and ET reports, authorities are reviewing the chargesheet and court orders and may also seek inputs from the RBI before deciding on further action.

The case has triggered a wider debate on oversight, governance standards, and accountability within India’s public sector banks. Users are asking on social media – Why has Ashwani Kumar not been removed from the post of MD&CEO when clear guidelines exist? The guidelines clearly say that an official under investigation should not occupy a key post. Users say that if a junior-level officer had been involved in the investigation, he would have been suspended from his job.

According to the chargesheet, Ashwani Kumar approved 30 export bills even though there were no confirmed export orders, no letters of credit, and despite negative risk reports related to Passi Jewellers, a Dubai-based group entity. A forensic audit by two independent firms found that Lal Sons diverted funds and opened parallel accounts in Punjab National Bank and Axis Bank without OBC Bank’s permission. Investigators stated that fund diversion of approximately ₹48 crore was already known to bank officials at the time of restructuring, yet due diligence was not enforced. The CBI alleged that the irregularities were a result of a conspiracy between company officials and certain bank officers.

Ashwani Kumar was not arrested during the investigation, as the CBI cited his cooperation, low flight risk, and the absence of mandatory prosecution approval from OBC at that time. When CBI investigates a financial fraud case, it takes permission from the bank to prosecute its employees. But in this case, the Bank did not permit CBI for the prosecution of Ashwani Kumar. However, the case has advanced in court. On September 8, a CBI special court took cognizance of the offences and noted that sufficient evidence existed to proceed. On November 11, the court directed Ashwani Kumar to furnish a ₹50,000 bond, prohibited him from leaving the country, and barred him from influencing witnesses.

The complaint was filed by OBC Bank against following individuals:

• Shri Rajeev Paul Singh Verma S/o Shri K.R. Verma, Director, R/o L-1/2 DLF, Phase-2, Gurgaon, Haryana 122008
• Shri Sanjeev Paul Singh Verma S/o Shri K.R. Verma, Director, R/o L-1/2 DLF, Phase-2, Gurgaon, Haryana 122008
• Smt. Poonam Verma w/o Shri Rajeev Paul Singh Verma, R/o L-1/2 DLF, Phase-2, Gurgaon, Haryana 122008
• Shri Kesho Ram Verma S/o Late Sh. Lal Singh, R/o L-1/2 DLF Phase-2, Gurgaon, Haryana
• Smt. Dulari Verma w/o Shri K.R. Verma, R/o R/o L-1/2 DLF Phase-2, Gurgaon, Haryana
• M/s Lalson Jewellers Ltd, having registered office at Building No. 13/3624, Regharpura, Karol Bagh, New Delhi 110005, through its Director.
• M/s R. Malik & Co. Pvt. Ltd., Building No. 13/3624, Regharpura, Karol Bagh, New Delhi, Central Delhi, through its Director.
• Unknown persons.

More details about the case are provided in the FIR filed by OBC Bank. You can download FIR via the link given below.

Click here to download FIR filed by OBC Bank (This PDF is available for Premium Users Only. Click here to join premium)