Published: Tue, June 12, 2018
Business | By Tara Barton

CBI seeks Red Corner Notice against Nirav Modi from Interpol

CBI seeks Red Corner Notice against Nirav Modi from Interpol

The report, which quoted Indian and British officials, said Modi had sought protection from "political persecution".

The losses were largely a result of having to set aside funds to pay other banks for the illegal guarantees issued in the Nirav Modi scam.

Nirav Modi, the billionaire jeweller at the heart of a more than $2 billion fraud case in India, has fled to the United Kingdom, where he is claiming political asylum, the Financial Times reported on Sunday, citing Indian and British officials. The ED, which is probing the money laundering angle in the case, had also sent requests to the Interpol in March for issuance of red corner notices (RCN) against Modi and his uncle Mehul Choksi, who too is linked to the fraud case.

Britain's Home Office said it does not provide information on individual cases.

His high-end eponymous brand has stores in several of the world's major cities and boasts celebrity customers including actresses Naomi Watts and Kate Winslet and Bollywood megastar Priyanka Chopra.

The 47-year-old and his uncle and business partner Mehul Choksi, also a diamond merchant, allegedly defrauded PNB out of 2.8 billion rupees ($43.8 million). It is alleged that Nirav Modi and others had cheated PNB in connivance with certain bank officials by getting LOUs issued fraudulently without following due procedure, making the bank incur a huge loss.

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The AP reported that out of the approximately 170 American staffers in the consulate, 150 have undergone the examinations. A State Department official says they are "potentially new cases" but not yet "medically confirmed".

An LoU is a guarantee given by an issuing bank to Indian banks having branches overseas to grant short-term credit to the applicant.

His escape had caused massive public outcry, with opposition political parties accusing Prime Minister Narendra Modi of helping him flee.

The Enforcement Directorate, India's financial fraud-investigating agency, had unsuccessfully approached Interpol in March for an worldwide arrest warrant.

The Indian government is now seeking the extradition of liquor tycoon Vijay Mallya, who fled to Britain in 2016, over unpaid loans to his Kingfisher Airlines.

The PNB came to light as the Indian government tries to reduce crippling debts accumulated by state-run banks. Last month several executives of the ban were named in the chargesheet.

Mallya is wanted in connection with allegedly unpaid loans to his beleaguered Kingfisher Airlines after he absconded to Britain in 2016. The centre is already seeking extradition of Vijay Mallya who is also in the UK.

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