A special Prevention of Money Laundering Act court in Mumbai on Tuesday issued a non-bailable warrant against businessman Nirav Modi in connection with the Punjab National Bank scam, ANI reported. Modi and his associates are accused of cheating the bank of more than Rs 13,000 crore.
On Monday, the Central Bureau of Investigation approached the Interpol seeking a Red Corner Notice against Modi and his uncle Mehul Choksi. The agency’s move came after the British Minister for Counter Terrorism Baroness Williams, who met Minister of State for Home Affairs Kiren Rijiju in New Delhi, confirmed that Modi was currently in the United Kingdom. The businessman, a diamond merchant, has reportedly sought political asylum in Britain.
The Enforcement Directorate had last week accused Modi of setting up over 15 dummy companies overseas to divert funds received fraudulently from Punjab National Bank.
The scam
On February 14, the Punjab National Bank informed the Bombay Stock Exchange that it had detected “fraudulent and unauthorised transactions” worth Rs 11,380 crore at its Brady House branch in South Mumbai. A few officials of the public sector bank had allegedly issued fraudulent Letters of Undertaking to Modi’s companies. Some of them have been arrested and are under investigation.
The bank revised the figure to Rs 12,703 crore and later to around Rs 13,645 crore.
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