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A Red Corner Notice by the Interpol has been issued against fugitive billionaire Mehul Choksi who is accused of duping Punjab National Bank and defrauding the bank of Rs 13,000 crores in alleged collusion with his nephew Nirav Modi. CBI spokesperson Abhishek Dayal said, “The Interpol has issued a Red Corner Notice against Mehul Choksi on the request of CBI.”
Choksi, who is now a citizen of Antigua, had escaped the country in the first week of January this year after he and his companies allegedly cheated the bank of Rs 7,000 crore. The CBI then filed a charge-sheeted against both Nirav Modi and Choksi separately in the scam.
In the CBI charge sheets, Choksi is accused of swindling Rs 7,080.86 crores making it the country’s biggest banking scam at over Rs 13,000 crore. The other accused accomplice Nirav Modi allegedly cheated the bank of Rs 6,000 crores.
A Red Notice is a request to locate and provisionally arrest an individual pending extradition. It serves as an instrument for countries to arrest or detain a fugitive, wanted by another member country if he is detected in their respective jurisdictions.
The case against Nirav Modi and Mehul Choksi is that through their companies, they availed credit from overseas branches of Indian banks using guarantees given through fraudulent LoUs and letters of credit. The credit was not then repaid, which brought the liability over the state-run banks.
