Interpol issues Red Corner Notice against Mehul Choksi

Interpol has issued a red corner notice (RCN) against fugitive diamantaire Mehul Choksi, accused of involvement in over $2 billion fraud at the Punjab National Bank (PNB), on CBI's request.

The notice means that Mehul Choksi can now be arrested or detained by any of 192-member countries of Interpol. Mehul Choksi is in Antigua. An RCN against him now empowers member countries to arrest him at the airport if he tries to flee from there.

Choksi and his nephew Nirav Modi are wanted by the Enforcement Directorate (ED) and the Central Bureau of Investigation for allegedly defrauding the PNB to the tune of Rs 14,000 crore in collusion with a few of its employees.

Interpol has already issued RCN against Nirav Modi's sister, Purvi Modi, a Belgian national and his brother, Neeschal Modi, in connection with the alleged PNB money laundering case.

Choksi, along with Nirav Modi, his wife Ami, brother Nishal -- a Belgian had fled the country in January first week this year, before the PNB approached CBI with a complaint against his companies for allegedly cheating through fraudulent issuance of Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs).

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

Separately, the CBI, in its charge-sheets last month, alleged Choksi swindled over Rs 7,000 crore, making it the country's biggest banking scam. Nirav Modi allegedly siphoned Rs 6,000 crore.

An additional loan default of over Rs 5,000 crore to Choksi's companies is also a matter of probe under the CBI.