Red corner notice is issued against Mehul Choksi

New Delhi: The Interpol has issued a Red Corner Notice (RCN) against absconding billionaire Mehul Choksi, who is an accused in the multi-crore Punjab National Bank (PNB) scam.  

According to sources, the international police issued the notice against Choksi on Wednesday on the request of the CBI rejecting his contentions of being persecuted by Indian agencies and the case being political in nature. A Red Corner Notice is a kind of international arrest warrant where Interpol asks its member countries to arrest or detain a fugitive, wanted by another member country, if he is detected in their respective jurisdictions. Choksi, 59, managing director of Gitanjali Gems Ltd, who escaped in January this year along with his nephew Nirav Modi, his wife Ami Modi and brother Nishal Modi, has taken citizenship of Antigua. Talking to reporters here, CBI spokesperson Abhishek Dayal said, “The Interpol has issued a Red Corner Notice against Mehul Choksi on the request of the CBI”.

Mr Choksi had challenged the CBI application seeking issuance of RCN against him calling the case a result of political conspiracy.  He also raised questions on issues such as jail conditions in India, his personal safety and health, they said.

The matter went to a five-member Interpol committee’s court, called Commission for Control of Files which cleared the RCN rejecting his contentions, sources said. The CBI has charge-sheeted both Nirav Modi and Choksi separately in the scam. The CBI, in its charge sheets, had alleged Choksi swindled `7,080 crore, making it the country’s biggest banking scam at over `13,000 crore. The prime accused in the case Nirav Modi allegedly siphoned `6,000 crore. An additional loan default of over `5,000 crore to Choksi’s companies is also a matter of probe under the CBI.

It is alleged that Nirav Modi and Choksi through their companies availed credit from overseas branches of Indian banks using guarantees given through fraudulent LoUs and letters of credit which were not repaid bringing the liability on the state-run bank, officials said.

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