At the club's annual awards dinner, he spoke of his support for the Gunners when he was working in Hong Kong.
"Look, that doesn't mean to say I don't love Birmingham City - I do," he told the Birmingham Mail. "This has been misinterpreted."
On the night, Pannu's actual words to the audience at the ICC were: "I am a fanatic Arsenal fan. Well, I was. Not now.
"This (Blues) is an arranged marriage - and I have fallen in love. I am a true Blue Nose - trust me when I say this now."
And Pannu said many people had got the wrong end of the stick when he spoke about the price Yeung paid for Blues.
In the context of his address, it was to show an example of how much he wanted the club, and how much he adores it.
"We have, in our owner a person who has made it and has come west," said Pannu.
"He has come to this country, he had the guts to buy the club, and he paid a premium. The club is worth £37 million, he paid £81 million for it - because he loves this club."