The Hush Post: At the behest of Indian authorities, there is going to be an Interpol intervention for a Red Corner Notice against diamantaires Nirav Modi and Mehul Choksi. They are allegedly the key men behind the over USD 2 billion Punjab National Bank scam.
Modi is right now reportedly in London on a visa provided by Singapore government.
Nirav Modi, his wife Ami, brother Neeshal and uncle Mehul Choksi, the Gitanjali group’s promoter, fled India probably smelling that PNB will soon approach the CBI with a complaint against these people.
CBI recently chargesheeted Nirav Modi and Mehul Choksi in the scam and are likely to seek Interpol’s help for a Red Corner Notice in order to bring them back for facing trials pending against them.
The CBI had immediately issued a diffusion notice with the Interpol to track Nirav Modi and Mehul Choksi but their whereabouts weren’t known.
Essentially, the Red Corner Notice allows enforcement agencies of the member countries to find and arrest a person wanted by a particular country.
The CBI, in a chargesheet filed last week has alleged that Modi, through his companies, siphoned off funds to the tune of Rs. 6,498.20 crore. It further says that Modi used fraudulent LoUs issued from PNB’s Brady House branch in Mumbai. Mehul Choksi swindled Rs. 7080.86 crore, which makes it the largest banking scam.
An additional loan default of over Rs. 5,000 crore to Geetanjli Jewellers of Mehul Choksi is also under the CBI investigation.
It is also alleged that Modi and Choksi through their companies availed credit from overseas branches of Indian banks. They used fraudulent guarantees of the PNB given through LoUs and letters of credit which never got repaid bringing the liability on the state-run bank.