It is called one more achievement for Modi government as Interpol has finally accepted the Central Bureau of Investigation’s request in billionaire jeweller Nirav Modi’s case. The International Criminal Police Organization (Interpol) today issued a red corner notice (RCN) against him. He is wanted in India due to fraud of more than $2 billion in connection with Punjab National Bank. PNB is India’s second largest government bank.
As per the Red Corner Notice, Interpol urges its 192 member countries to detain or arrest an accused, if spotted in their countries so that they can be extradited or deported. It is like international arrest warrant.
Apart from Nirav Modi, the other accused in this scam are Neeshal Modim, Mehul Choksi and Subhash Parab. The CBI already filed chargesheets before a special CBI court in Mumbai in this case.
On February 15, a diffusion notice was also issued on request of CBI through Interpol against Modi, Choksi and Nishal. This notice is meant to track the movements of an absconder in Interpol’s member countries. But, this notice was not proved to be successful.
India had written to several European countries for help in tracing the jeweler but except United Kingdom none had responded to it. In fact, he managed to travel several countries despite his passport being cancelled by Indian government.
What is the matter?
Nirav Modi has been charged against the fraudulent LoUs and letters of credit issued under the name of PNB for his companies. These financial instruments were used to avail credit from overseas branches of Indian banks using PNB’s guarantee and these were not repaid. Hence, it brought the liability on Punjab National Bank.
Know what LoU is
An LoU (Letter of Undertaking) is a guarantee given by an issuing bank to Indian banks having branches abroad to grant short-term credit to the applicant.