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Nirav Modi's siblings face CBI, ED action

Press Trust of India  |  New Delhi 

Probe agencies have moved to stifle movements of fugitive billionaire Nirav Modi's family members, with the getting an Red Corner Notice issued against his sister and the making an extradition request against his brother, in connection with the alleged USD 2-billion PNB fraud.

has issued a Red Corner Notice (RCN) against 44-year-old on the request of the Enforcement Directorate, and the has moved an application to extradite 34-year-old Neeshal Modi, officials said Monday.

In its RCN issued against a fugitive, the asks its 192 member countries to arrest or detain the person if spotted in their countries after which extradition or deportation proceedings can begin.

Both and are accused in the USD 2-billion scam allegedly orchestrated by their elder brother and uncle in Punjab National Bank, they said.

The agencies are aiming to bring both his family members back from as has extradition treaty with the European country.

The has charged with laundering the alleged proceeds of the biggest scam in the country.

Neeshal Modi, against whom a Red Corner Notice was issued on the request of the CBI, has been located in Belgium, the officials said.

The agency has moved an extradition application for bringing him back, they said.

The application has been submitted to the which will send it to through the External Affairs Ministry, they said.

He is alleged to be the beneficiary of funds siphoned off, instrumental in introducing dummy partners and changing pattern of partnership structure of companies, they said.

Neeshal Modi, along with his brother and Choksi, fled the country in the first week of January this year, weeks before the scam surfaced in Brady House branch of in

has been located in the United Kingdom, and Choksi is in where he has taken citizenship, they said.

The scam pertains to the alleged issuance of fraudulent Letters of Undertaking of more than USD 2 billion to companies of Nirav Modi and Choksi by Punjab National Bank's Brady House branch during 2011-17, officials said.

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

Nirav Modi and his companies allegedly availed credit from the overseas branches of Indian banks using the fraudulent PNB guarantees given through LoUs and letters of credit issued by the Brady House branch which were not repaid, bringing the liability on the state-run bank, the officials said.

Both Nirav Modi and have refused to join investigation in spite of repeated summons by the agencies to appear for questioning.

Choksi has cited threat to his life, health condition, media bias, and poor jail conditions in his appeal before the Interpol to stall issuance of Red Corner Notice against him, they said.

The issue will now be put before an internal five-member committee of the Interpol which will hear the plea of Choksi and arguments of Indian agencies in October before deciding the issue.

Indian agencies are staring at lengthy legal battles before any success is achieved in bringing these fugitives back in to face trial in the case, they said.

The family is believed to have planned their exit well in advance as they left the country weeks before the scam surfaced in the Brady House branch of PNB in

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, September 10 2018. 20:46 IST