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A special CBI court in Mumbai has issued non-bailable warrants against Nirav Modi and his uncle Mehul Choksi in connection with cases related to the PNB fraud, officials said here on Sunday.
Nirav Modi and Mehul Choksi A special CBI court in Mumbai has issued non-bailable warrants against Nirav Modi and his uncle Mehul Choksi in connection with cases related to the PNB fraud,
officials said here on Sunday. Fugitive billionaire diamantaire Nirav and his uncle Choksi are two big-name jewellers accused of defrauding India's second-largest state bank of nearly
$2 billion by securing credit from overseas lenders through bogus guarantees. Both have repeatedly refused to join investigations by multiple agencies into what has been dubbed India's
biggest bank fraud that started unravelling last month have led to the arrest of 21 people, including some bankers. The whereabouts of both Choksi and Modi are unknown. CBI had written to
Modi and Choksi to join investigations on their official e-mail ids but they have refused to come, citing business engagements and health issues. The issuance of warrants also opens door of
seeking red corner notices against both from the Interpol. The government has claimed to have tracked Nirav in Hong Kong where it has sent a request for his provisional arrest. CBI is
questioning officials of overseas branches of Indian banks which had extended credit facilities to their companies on the basis of fraudulent Letters of Undertaking (LoUs) issued by
PNB's Brady House branch in Mumbai. The agency has also summoned the official who handled foreign exchange transactions in the Hong Kong branch of the Allahabad Bank. Several bank
employees have been booked for collusion in the case. An LoU is a guarantee which is given by an issuing bank to Indian banks having branches abroad to grant a short-term credit to the
applicant. In case of default, the bank issuing the LoU has to pay the liability to the credit giving bank along with accruing interest. The CBI had approached the Interpol with a request
for issuing 'Diffusion Notice' which was aimed at locating an individual. (_With PTI inputs_)